SeaStar Medical Holding Corp Earnings Per Share Disclosure
Note 16. Net Loss Per Share
Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, including vested restricted stock units for which common shares have not yet been issued, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, the warrants, common stock options, and unvested restricted stock units are considered to be potentially dilutive securities. As the Company has reported a net loss for all periods presented, diluted net loss per common share is the same as basic net loss per common share for all periods.
The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive:
|
|
2024 |
|
2023 |
|
|
|
|
|
Investor E (January 2024) warrants |
|
650,446 |
|
— |
July 2024 Warrants |
|
1,014,219 |
|
— |
Placement Agent warrants |
|
21,682 |
|
— |
Public Stockholders̕ warrants |
|
422,000 |
|
414,000 |
Private Placement warrants |
|
229,520 |
|
229,520 |
PIPE Investor warrants |
|
20,000 |
|
28,000 |
Legacy warrants |
|
1,957 |
|
2,789 |
Convertible Note warrants |
|
— |
|
106,493 |
Options to purchase common stock |
|
21,617 |
|
20,178 |
Unvested restricted stock units |
|
220,247 |
|
10,261 |
Total |
|
2,601,688 |
|
811,242 |
The following table presents the calculation of basic and diluted net loss per share (in thousands except share and per share information):
|
|
|
|||
($ in thousands except share and per share amounts) |
|
2024 |
|
|
2023 |
Net loss |
$ |
(24,830) |
|
$ |
(26,232) |
Weighted-average shares outstanding - basic and diluted |
|
3,743,554 |
|
|
866,813 |
Basic and diluted net loss per share |
$ |
(6.63) |
|
$ |
(30.26) |
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.