16. Net Loss Per Share

The following outstanding potentially dilutive common stock equivalents were excluded from the computation of diluted net loss per share for the periods indicated because including them would have been antidilutive (in thousands):

 

 

December 31,

 

 

2024

 

 

2023

 

Common stock warrants

 

 

26,273

 

 

 

2,894

 

Legacy GCT Earnout Shares

 

 

20,000

 

 

 

 

Sponsor Earnout Shares

 

 

571

 

 

 

 

Convertible promissory notes

 

 

500

 

 

 

1,835

 

Options issued and outstanding

 

 

535

 

 

 

668

 

RSUs outstanding

 

 

1,214

 

 

 

392

 

Total

 

 

49,093

 

 

 

5,789

 

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.