11. Net Loss Per Share

Loss Per Share

Basic loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed based on the sum of the weighted average number of common shares and dilutive common shares outstanding during the period. As described in Note 8 – Stockholders' Equity, Earnout Shares issued in connection with the Business Combination are subject to vesting based on the VWAP of common shares during the earnout period. The Earnout Shares are excluded from the calculation of basic and diluted weighted-average number of common shares outstanding until vested.

The following table outlines the basic and diluted net loss per share for the years ended December 31, 2024 and 2023:

 Year Ended December 31,
(in thousands, except per share data)
20242023
Net loss$(62,033)$(50,619)
Weighted-average shares outstanding, basic and diluted102,365 99,683 
Net loss per share, basic and diluted$(0.61)$(0.51)

The following table outlines common share equivalents which were excluded from the computation of diluted net loss per share, as the effect of their inclusion would be anti-dilutive or the share equivalents were contingently issuable as of each period presented:

 December 31,
20242023
Options to purchase common stock issued and outstanding(1)
21,993,590 20,823,399 
Earnout shares16,292,542 16,292,542 
Avista private placement warrants8,233,333 8,233,333 
Avista public warrants7,666,667 7,666,667 
Restricted stock units issued and outstanding
1,855,957 2,090,145 
Forward purchase warrants1,666,667 1,666,667 
Backstop warrants1,445,489 1,445,489 
Shares expected to be purchased under employee stock purchase plan687,515 1,589,197 
Total anti-dilutive shares59,841,760 59,807,439 
_____________
(1)Outstanding stock options include awards outstanding to employees of Ligand.

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.