Mereo BioPharma Group plc Earnings Per Share Disclosure
16. Loss per share
Basic loss per share is calculated by dividing the loss attributable for the year to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted loss per share is based on dividing the loss attributable for the year, adjusted for the effect of diluted ordinary shares, by ordinary share equivalents, which includes the weighted average number of ordinary shares outstanding and the effect of dilutive ordinary share equivalents.
|
|
Year Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
|
|
($'000, except share and per share |
|
|
($'000, except share and per share |
|
||
Net loss |
|
$ |
(43,253 |
) |
|
$ |
(29,466 |
) |
Net loss per share - basic and diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.04 |
) |
Weighted-average number of shares used in computing net loss per share - basic and diluted |
|
|
739,624,264 |
|
|
|
659,453,921 |
|
For the years ended December 31, 2024 and 2023, share-based compensation awards, convertible loan notes, warrant liabilities and warrants classified in equity were anti-dilutive as they would have decreased the loss per share and were excluded from the calculation of diluted loss per share. Therefore, the weighted average shares outstanding used to calculate both the basic and diluted loss per share was the same.
|
|
Year Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Share-based compensation awards |
|
|
77,647,995 |
|
|
|
75,399,815 |
|
Convertible loan notes |
|
|
16,966,052 |
|
|
|
15,657,825 |
|
Warrant liabilities |
|
|
2,487,816 |
|
|
|
2,487,816 |
|
Warrants classified in equity |
|
|
5,001,313 |
|
|
|
5,001,313 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 26, 2025 | Showing above |
| 2023 | Mar 27, 2024 | |
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.