Sionna Therapeutics, Inc. Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Convertible preferred stock | — | 27,149,206 | |||||||||
| Options to purchase common stock | 5,767,799 | 3,700,335 | |||||||||
| Unvested restricted common stock | — | 75,958 | |||||||||
| Total | 5,767,799 | 30,925,499 | |||||||||
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.