Summit Therapeutics Inc.SMMT

Summit Therapeutics Inc. Earnings Per Share Disclosure

10-KFiled Feb 23, 20262 min read
Net Loss per Share
The following table sets forth the computation of basic and diluted net loss per share:
Year Ended December 31,
202520242023
Net loss$(1,079,586)$(221,315)$(614,928)
Basic and diluted weighted average number of shares of common stock outstanding747,702,265 718,541,896 619,646,180 
Basic net loss per share$(1.44)$(0.31)$(0.99)
Diluted net loss per share$(1.44)$(0.31)$(0.99)

Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the diluted net loss by the weighted-average number of common shares outstanding for the period, including potentially dilutive common shares. Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods, as the inclusion of all potential common share equivalents outstanding would have been antidilutive.

Because the 2023 Rights Offering (see Note 13) exercise price of $1.05 per share was less than the closing price of $1.82 per share on March 1, 2023, the expiration, the Company has retroactively adjusted earnings per share and the weighted average number of shares outstanding for the bonus element for the year ended December 31, 2023.

The following potentially dilutive securities were excluded from the computation of the diluted net loss per share of common stock for the periods presented because their effect would have been anti-dilutive:
Year Ended December 31,
202520242023
Options to purchase common stock115,614,72868,920,33454,209,289
Warrants—4,629,9885,015,642
Shares expected to be purchased under employee stock purchase plan65,90586,550155,163
Total
115,680,63373,636,87259,380,094

Stock options that are outstanding and contain improbable vesting criteria are excluded from the presentation of common stock equivalents outstanding in the table above.

Historical Timeline

Fiscal YearFiled
2025Feb 23, 2026Showing above
2024Feb 24, 2025
2023Feb 20, 2024
2020Mar 31, 2021

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.

Other Available Disclosures

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