Stoke Therapeutics, Inc. Earnings Per Share Disclosure
10. Net loss per share
The following table summarizes the computation of basic and diluted net loss per share of the Company:
|
|
Year ended December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Numerator: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(88,981 |
) |
|
$ |
(104,699 |
) |
Denominator: |
|
|
|
|
|
|
||
Weighted-average number of common shares, basic and diluted |
|
|
54,008,883 |
|
|
|
43,994,862 |
|
Net loss per share, basic and diluted |
|
$ |
(1.65 |
) |
|
$ |
(2.38 |
) |
The Company has included the outstanding pre-funded warrants from the April 2024 offering in the number of total outstanding shares used for the computation of basic and diluted net loss per share for the period ending December 31, 2024, since they have a de minimis exercise price. The Company’s potential dilutive securities, which include common stock options, RSUs, PSUs, and ESPP purchase rights, have been excluded from the computation of diluted net loss per share as the effect would be anti-dilutive. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share is the same.
The Company excluded the following potential common shares, presented based on amounts outstanding at period end, from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect:
|
|
As of December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Outstanding options to purchase common stock |
|
|
7,994,257 |
|
|
|
6,478,063 |
|
Restricted stock units |
|
|
1,222,939 |
|
|
|
1,513,102 |
|
Performance stock units |
|
|
219,000 |
|
|
|
1,513,102 |
|
Total |
|
|
9,436,196 |
|
|
|
7,991,165 |
|
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.