KALA BIO, Inc. Earnings Per Share Disclosure
Note 12: Loss Per Share
Basic and diluted net loss per share attributable to common stockholders was calculated as follows for the years ended December 31, 2024 and 2023:
Year Ended | |||||
December 31, | |||||
2024 |
| 2023 | |||
Numerator: | |||||
Net loss attributable to common stockholders | $ | (38,511) | $ | (42,199) | |
Denominator: | |||||
Weighted-average common shares outstanding, basic and diluted (1) | 3,796,047 | 2,432,008 | |||
Net loss per share attributable to common stockholders, basic and diluted | $ | (10.15) | $ | (17.35) | |
| (1) | Included in the weighted-average common shares outstanding, basic and diluted are vested but deferred shares for which all contingencies have been satisfied. |
The following potential common stock equivalents were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect. The share amounts presented below represent the average of the number of incremental shares included in each quarterly calculation:
Year Ended | |||||
December 31, | |||||
2024 | 2023 | ||||
Options to purchase shares of common stock | 905,645 | 549,952 | |||
Unvested RSUs | 621,886 | 654,907 | |||
Unexercised warrants | 4,223 | 4,303 | |||
Convertible preferred stock (as converted to common stock) | 7,294,125 | 5,282,850 | |||
8,825,879 | 6,492,012 | ||||
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.