SES AI Corp Earnings Per Share Disclosure
Note 17. Net Income (Loss) Per Share
Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing net loss, as adjusted for changes in fair value recognized in earnings from equity contracts classified as liabilities, by the weighted average number of common shares outstanding and, when dilutive, common share equivalents from outstanding stock options and restricted stock units (using the treasury-stock method). The weighted-average number of common shares used in the computation of basic and diluted net income per share were as follows:
Years Ended December 31, | |||||
(in thousands, except share and per share amounts) | 2024 | 2023 | |||
Numerator: |
|
| |||
Net loss attributable to common stockholders - basic and diluted | $ | (100,185) | $ | (53,400) | |
Denominator: | |||||
Weighted average shares of common stock outstanding - basic and diluted | 321,824,143 | 315,051,508 | |||
Net loss per share attributable to common stockholders - basic and diluted | $ | (0.31) | $ | (0.17) | |
The number of common stock equivalents excluded from the computation of diluted net loss per share because either the effect would have been anti-dilutive, or the performance criteria related to such shares and awards had not been met, were as follows:
Years Ended December 31, | |||||
2024 | 2023 | ||||
Escrowed Earn-Out Shares | 27,690,978 | 27,690,978 | |||
Options to purchase common stock | 6,063,110 | 13,619,793 | |||
Public Warrants | 9,199,947 | 9,199,947 | |||
Sponsor Earn-Out Shares | 5,520,000 | 5,520,000 | |||
Private Warrants | 5,013,333 | 5,013,333 | |||
Unvested RSUs | 13,282,923 | 6,359,474 | |||
Unvested PSUs | 5,973,050 | 3,364,810 | |||
Earn-Out Restricted Shares | 765,990 | 1,619,998 | |||
Unvested RSAs | 255,458 | 649,567 | |||
Total | 73,764,789 | 73,037,900 | |||
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.