ARS Pharmaceuticals, Inc. Earnings Per Share Disclosure
Basic net (loss) income per share attributable to common stockholders is calculated by dividing the net (loss) income attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period, without consideration of potentially dilutive securities. Diluted net (loss) income per share attributable to common stockholders is the same as basic net (loss) income per share attributable to common stockholders since the effect of potentially dilutive securities is anti-dilutive given the net (loss) income of the Company. For purposes of this calculation, stock options, warrants, and unvested restricted stock units, are considered to be common stock equivalents but are not included in the calculations of diluted net (loss) income per share for the periods presented as their effect would be antidilutive.
The following table provides the calculation of basic and diluted net (loss) income per share (in thousands, except share and per share information):
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Years Ended December 31, |
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2025 |
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2024 |
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Net (loss) income per share, basic: |
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|
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Net (loss) income attributable to common stockholders |
|
$ |
(171,298 |
) |
|
$ |
7,998 |
|
Shares used in computation: |
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|
|
|
|
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||
Weighted-average common shares outstanding, basic |
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|
98,566,481 |
|
|
|
96,936,661 |
|
Net (loss) income per share, basic |
|
$ |
(1.74 |
) |
|
$ |
0.08 |
|
|
|
|
|
|
|
|
||
Net (loss) income per share, diluted: |
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|
|
|
|
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Net (loss) income attributable to common stockholders |
|
$ |
(171,298 |
) |
|
$ |
7,998 |
|
Shares used in computation: |
|
|
|
|
|
|
||
Weighted-average common shares outstanding, basic |
|
|
98,566,481 |
|
|
|
96,936,661 |
|
Weighted-average effect of potentially dilutive securities: |
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|
|
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Stock options |
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|
— |
|
|
|
5,369,025 |
|
Shares to be purchased under Employee Stock Purchase Plan |
|
|
— |
|
|
|
47,237 |
|
Warrants |
|
|
— |
|
|
|
36,023 |
|
Restricted stock units |
|
|
— |
|
|
|
1,882 |
|
Weighted-average common shares outstanding, diluted |
|
|
98,566,481 |
|
|
|
102,390,828 |
|
Net (loss) income per share, diluted |
|
$ |
(1.74 |
) |
|
$ |
0.08 |
|
The following securities are excluded from the calculation of weighted-average dilutive common shares because their inclusion would have been anti-dilutive:
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|
As of December 31, |
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|
2025 |
|
|
2024 |
|
||
Warrants to purchase common stock |
|
|
45,456 |
|
|
|
— |
|
Common stock options outstanding |
|
|
16,744,639 |
|
|
|
6,265,948 |
|
Restricted stock units outstanding |
|
|
1,382 |
|
|
|
— |
|
Total |
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|
16,791,477 |
|
|
|
6,265,948 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 9, 2026 | Showing above |
| 2024 | Mar 20, 2025 | |
| 2021 | Mar 31, 2022 | |
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.