Rani Therapeutics Holdings, Inc. Earnings Per Share Disclosure
15. Net Loss Per Share
The following table sets forth the computation of basic and diluted net loss per Class A common share attributable to Rani Holdings (in thousands, except per share data):
|
|
Year Ended December 31, |
|
||||
|
|
2024 |
|
2023 |
|
||
Numerator: |
|
|
|
|
|
||
Net loss per Class A common share attributable to Rani Therapeutics Holdings, Inc. |
|
$ |
(30,018 |
) |
$ |
(33,970 |
) |
Denominator: |
|
|
|
|
|
||
Weighted average Class A common share outstanding—basic and diluted |
|
|
28,476 |
|
|
25,505 |
|
Net loss per Class A common share attributable to Rani Therapeutics Holdings, Inc.—basic and diluted |
|
$ |
(1.05 |
) |
$ |
(1.33 |
) |
The following table shows the total outstanding securities considered anti-dilutive and therefore excluded from the computation of diluted net loss per Class A common share attributable to Rani Holdings (in thousands):
|
|
As of December 31, |
|
||||
|
|
2024 |
|
2023 |
|
||
Paired Interests |
|
|
23,972 |
|
|
24,116 |
|
Stock options |
|
|
10,225 |
|
|
6,640 |
|
Warrants |
|
|
6,656 |
|
|
76 |
|
Non-corresponding Class A Units |
|
|
1,230 |
|
|
1,345 |
|
Restricted stock units |
|
|
812 |
|
|
1,276 |
|
Shares issuable pursuant to the ESPP |
|
|
62 |
|
|
114 |
|
Restricted stock awards |
|
|
3 |
|
|
34 |
|
|
|
|
42,960 |
|
|
33,601 |
|
Shares of Class B Common Stock do not share in the Company’s earnings and are not participating securities. Accordingly, separate presentation of loss per share of Class B common stock under the two-class method has not been provided. The outstanding shares of Class B Common Stock were determined to be anti-dilutive for the year ended December 31, 2024. Therefore, they are not included in the computation of net loss per Class A common share attributable to Rani Therapeutics Holdings, Inc.
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.