Century Therapeutics, Inc. Earnings Per Share Disclosure
Note 13—Basic and diluted net loss per common share
The Company’s potentially dilutive securities, which include RSUs, restricted stock, warrants, early exercised stock options and stock options to purchase shares of the Company’s common stock, have been excluded from the computation of dilutive net loss per share as the effect would be antidilutive. Therefore, the weighted-average number of shares of common stock outstanding used to calculate both basic and diluted net loss per share is the same. The Company excluded the following potential shares of common stock presented based on amounts outstanding at each stated period end, from the computation of diluted net loss per share for the years ended December 31, 2024 and 2023 because including them would have had an anti-dilutive effect.
Year Ended | Year Ended | ||||
December 31, | December 31, | ||||
| 2024 |
| 2023 | ||
Stock options to purchase common stock | 5,310,229 |
| 8,714,660 | ||
Early exercised stock options subject to future vesting | 11,321 |
| 119,280 | ||
Restricted stock awards subject to future vesting | 24,821 |
| 49,416 | ||
Unvested restricted stock units |
| 2,852,909 |
| 3,721,471 | |
Warrants | 32,009 | 32,009 | |||
Total |
| 8,231,289 |
| 12,636,836 |
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.