Esperion Therapeutics, Inc.ESPR

Esperion Therapeutics, Inc. Earnings Per Share Disclosure

10-KFiled Mar 7, 20251 min read
Net Loss Per Common Share
Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Pre-Funded Warrants are included in the weighted-average number of common shares outstanding during the periods. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common stock equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, warrants for common stock, stock options, PBSOs, unvested RSUs and PBRSUs, shares issuable under the ESPP and shares issuable upon conversion of the convertible notes are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive.
The shares outstanding at the end of the respective periods presented below were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect:
December 31,
2024		December 31,
2023		December 31,
2022
Common shares under option5,177,511 3,686,191 3,842,737 
Unvested RSUs4,447,074 3,047,888 1,768,185 
Shares issuable related to the ESPP116,804 — 27,558 
Unvested PBRSUs— 160,275 461,250 
Common shares under PBSOs632,950 661,850 499,200 
Shares issuable upon conversion of convertible notes34,338,912 8,007,010 8,007,010 
Warrants for common stock26,071,429 36,344,212 36,964,286 
Total potential dilutive shares70,784,680 51,907,426 51,570,226 

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.

Other Available Disclosures

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