GALECTIN THERAPEUTICS INCGALT

GALECTIN THERAPEUTICS INC Earnings Per Share Disclosure

10-KFiled Mar 31, 20251 min read
11.
Loss Per Share

Basic net loss per common share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding during the period. For the years ended December 31, 2024 and 2023, as the Company was in a net loss position, the diluted loss per share computations for such periods did not assume the exercise of warrants and stock options or the conversion of Convertible Notes, or the conversion of convertible preferred stock as they would have had an anti-dilutive effect on loss per share.

The following potentially dilutive securities have been excluded from the computations of diluted weighted average shares outstanding as of December 31, 2024 and 2023 as the inclusion thereof would have been anti-dilutive:

   
Year Ended
December 31,
  
   
2024
(Shares)
    
2023
(Shares)
  
Warrants to purchase shares of common stock
    
9,595,940
       9,256,493  
Options to purchase shares of common stock
    
6,854,758
       6,333,841  
Shares of common stock issuable upon conversion of convertible notes payable – related party
    
7,024,053
       6,418,913  
Shares of common stock issuable upon conversion of convertible line of credit – related party
     25,103,873       13,833,356  
Shares of common stock issuable upon conversion preferred stock
    
499,174
       499,174  
     
49,077,798
       36,341,777  

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

Income TaxesFair ValuePP&ESegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance