ELUTIA INC. Earnings Per Share Disclosure
Note 16. Net Income (Loss) Per Share
Net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss), adjusted for gains on the revaluation of warrant liability (see Note 14), by the weighted average number of shares of common stock outstanding during the period, adjusted for the potential dilutive effect of the Company’s prefunded warrants (see Note 14), outstanding stock options, outstanding RSUs, and shares issuable under the ESPP. The treasury stock method was used to calculate the potential dilutive effect of these common stock equivalents.
Year Ended | ||||||
(in thousands, except share and per share data) | December 31, | |||||
| 2025 | | 2024 | |||
Numerator: |
| |
| | ||
Net loss from continuing operations | $ | (15,871) | $ | (45,345) | ||
Income (loss) from discontinued operations | 69,251 | (8,604) | ||||
Net income (loss) | 53,380 | (53,949) | ||||
Less: dilutive gain on revaluation of warrant liability | (13,424) | — | ||||
Net income (loss) for dilutive earnings per share | $ | 39,956 | $ | (53,949) | ||
Denominator: |
| |
| | ||
Weighted average number of common shares - basic |
| 41,416,850 |
| 29,071,113 | ||
Effect of dilutive prefunded warrants | 4,525,937 | — | ||||
Weighted average number of common shares - diluted |
| 45,942,787 |
| 29,071,113 | ||
Net loss from continuing operations per share - basic | $ | (0.38) | $ | (1.56) | ||
Net loss from continuing operations per share - diluted | $ | (0.64) | $ | (1.56) | ||
Net income (loss) from discontinued operations per share - basic | $ | 1.67 | $ | (0.30) | ||
Net income (loss) from discontinued operations per share - diluted | $ | 1.51 | $ | (0.30) | ||
Net income (loss) per share - basic | $ | 1.29 | $ | (1.86) | ||
Net income (loss) per share - diluted | $ | 0.87 | $ | (1.86) | ||
Certain of the Company’s potential dilutive securities have been excluded from the computation of diluted net loss per share as the effect would be anti-dilutive. The Company excluded the following potential common shares, presented based on amounts outstanding at period end, from the computation of diluted net loss per share attributable to common stockholders:
December 31, | ||||
| 2025 | | 2024 | |
Options to purchase common stock |
| 3,297,941 | 3,220,991 | |
Restricted stock units | 726,805 | 1,417,123 | ||
Class A common stock warrants | 187,969 | 187,969 | ||
2023 Prefunded Warrants | — | 3,573,326 | ||
2024 Prefunded Warrants | — | 725,000 | ||
2025 Prefunded Warrants | — | — | ||
Total |
| 4,212,715 | 9,124,409 | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 11, 2024 | |
| 2022 | Mar 23, 2023 | |
| 2021 | Mar 8, 2022 | |
| 2020 | Mar 15, 2021 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.