Enliven Therapeutics, Inc. Earnings Per Share Disclosure
16. Net Loss Per Share
Basic and diluted net loss per common share were calculated as follows (in thousands, except share and per share amounts):
|
|
Year Ended December 31, |
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|||||
|
|
2024 |
|
|
2023 |
|
||
Numerator: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(89,024 |
) |
|
$ |
(71,584 |
) |
Denominator: |
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|
|
|
|
|
||
Weighted-average common shares outstanding (including vested and unvested shares) |
|
|
47,117,384 |
|
|
|
35,702,864 |
|
Less: weighted-average unvested common stock issued upon early exercise of common stock options |
|
|
(43,349 |
) |
|
|
(119,154 |
) |
Less: weighted-average unvested restricted shares of common stock |
|
|
(1,503 |
) |
|
|
(37,495 |
) |
Weighted-average shares used to compute net loss per common share, basic and diluted |
|
|
47,072,532 |
|
|
|
35,546,215 |
|
Net loss per share, basic and diluted |
|
$ |
(1.89 |
) |
|
$ |
(2.01 |
) |
Pre-Funded Warrants to purchase 1,071,505 shares of the Company's common stock were used in the calculation of the weighted-average common shares outstanding for the year ended December 31, 2024.
The Company’s potentially dilutive securities have been excluded from the computation of diluted net loss per share as the effect would be anti-dilutive. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share is the same. The following potentially dilutive securities, presented on an as converted basis, were excluded from the calculation of net loss per share due to their anti-dilutive effect:
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|
As of December 31, |
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|||||
|
|
2024 |
|
|
2023 |
|
||
Stock options outstanding |
|
|
7,405,797 |
|
|
|
5,817,339 |
|
Unvested restricted stock awards |
|
|
— |
|
|
|
7,480 |
|
Unvested restricted stock units |
|
|
76,145 |
|
|
|
78,505 |
|
ESPP shares pending issuance |
|
|
3,179 |
|
|
|
5,254 |
|
Total |
|
|
7,485,121 |
|
|
|
5,908,578 |
|
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.