LENZ Therapeutics, Inc. Earnings Per Share Disclosure
11. Net Loss Per Share Attributable to Common Stockholders
The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders, which excludes shares which are legally outstanding, but subject to repurchase by the Company (in thousands, except share and per share amounts):
|
|
Year Ended December 31, |
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Numerator: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(124,651 |
) |
|
$ |
(101,052 |
) |
Denominator: |
|
|
|
|
|
|
||
Weighted-average common shares outstanding |
|
|
58,046,553 |
|
|
|
58,111,437 |
|
Less: weighted-average unvested restricted shares and shares subject to repurchase |
|
|
(1,031,394 |
) |
|
|
(3,237,762 |
) |
Weighted-average shares used to compute basic and diluted net loss per share attributable to common stockholders |
|
|
57,015,159 |
|
|
|
54,873,675 |
|
Net loss per share attributable to common stockholders — basic and diluted: |
|
$ |
(2.19 |
) |
|
$ |
(1.84 |
) |
Anti-dilutive Outstanding Shares or Equivalents
The following outstanding options, unvested shares, and ESPP shares were excluded (as common stock equivalents) from the computation of diluted net loss per common share for the periods presented as their effect would have been antidilutive (in thousands):
|
|
Year Ended December 31, |
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Options to purchase common stock |
|
|
5,376,373 |
|
|
|
7,755,303 |
|
Common stock subject to vesting or repurchase |
|
|
565,667 |
|
|
|
2,767,526 |
|
Employee Stock Purchase Plan shares |
|
|
— |
|
|
|
168,080 |
|
Total |
|
|
5,942,040 |
|
|
|
10,690,909 |
|
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.