ProMIS Neurosciences Inc. Earnings Per Share Disclosure
13. | NET LOSS PER SHARE |
Basic net earnings per share applicable to common stockholders is calculated by dividing net earnings applicable to common shareholders by the weighted average shares outstanding during the period, without consideration for common share equivalents. Diluted net earnings per share applicable to common shareholders is calculated by adjusting the weighted average shares outstanding for the dilutive effect of common share equivalents outstanding for the period, determined using the treasury-stock method and the if-converted method. For purposes of the calculation of dilutive net (loss) income per share applicable to common shareholders, stock options, and warrants are considered to be common stock equivalents but are excluded from the calculation of diluted net (loss) income per share applicable to common shareholders when their effect would be anti-dilutive or would not add additional Common Shares to the denominator of the calculation due to being out-of-the-money.
As of December 31, 2025 and 2024, respectively, 74,673 and 86,481 Pre-Funded Warrants to purchase common shares for little to no consideration, issued in connection with the August 2023 Private Placement and July 2024 Private Placement (see Note 6), were included in the basic and diluted net (loss) income per share calculation. The following table sets forth the computation of basic and diluted net loss (income) per share attributable to common shareholders:
Years Ended December 31, | ||||||
2025 | | 2024 | ||||
Numerator: | ||||||
Net (loss) income | $ | (39,719,147) | $ | 2,778,873 | ||
Denominator: |
| |
| | ||
Weighted-average shares outstanding used in computing net (loss) income per share attributable to common shareholders, basic and diluted |
| 1,756,844 |
| 1,036,799 | ||
Effect of potentially dilutive securities: | ||||||
Warrants | — | 20,882 | ||||
Stock options | — | 789 | ||||
Diluted weighted-average common shares outstanding | 1,756,844 | 1,058,469 | ||||
Net (loss) income per share attributable to common shareholders, basic and diluted | $ | (22.61) | $ | 2.68 | ||
Diluted net (loss) income per share attributable to common shareholders | $ | (22.61) | $ | 2.63 | ||
The following outstanding potentially dilutive common shares equivalents were excluded from the computation of diluted net (loss) income per share for the periods presented because including them would have been antidilutive:
Year Ended | ||||
December 31, | ||||
| 2025 | | 2024 | |
Options issued and outstanding under stock option plan |
| 180,827 |
| 142,978 |
Warrants |
| 2,564,332 |
| 2,199,175 |
Deferred share units |
| 42 |
| 42 |
Total |
| 2,745,201 |
| 2,342,195 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 25, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2022 | Mar 8, 2023 | |
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.