Protara Therapeutics, Inc. Earnings Per Share Disclosure
15. Net Income (Loss) per Common Share
The following table sets forth the computation of the net income (loss) per share attributable to common stockholders, basic and diluted:
For the Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Numerator: | ||||||||
| Net income (loss) attributable to common stockholders | $ | (57,439 | ) | $ | (44,596 | ) | ||
| Denominator: | ||||||||
| Weighted-average shares of common stock outstanding, basic and diluted | 42,836,129 | 20,592,847 | ||||||
| Net income (loss) per share attributable to common stockholders, basic and diluted | $ | (1.34 | ) | $ | (2.17 | ) | ||
Since the Company was in a net loss position for all periods presented, net income (loss) per share attributable to common stockholders was the same, on a basic and diluted basis, as the inclusion of all potential common equivalent shares outstanding would have been anti-dilutive. The Company excluded the following potential shares of common stock, presented based on amounts outstanding at each period end, from the computation of diluted net income (loss) per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:
As of December 31, | ||||||||
| 2025 | 2024 | |||||||
| April 2024 Common Warrants | 10,118,380 | 10,118,380 | ||||||
| Series 1 Convertible Preferred Stock | 5,616,973 | 7,993,217 | ||||||
| Stock options | 5,693,891 | 3,855,478 | ||||||
| 2024 Underwriters’ Option | 438,738 | |||||||
| Restricted stock units | 571,145 | 295,914 | ||||||
| Total potentially dilutive shares | 22,000,389 | 22,701,727 | ||||||
Subject to the terms of the 2024 Underwriting Agreement, the 2024 Underwriters’ Option allowed for the purchase of an additional 2,402,305 shares of common stock. On January 8, 2025, the 2024 Underwriters notified the Company of their determination to exercise the 2024 Underwriters’ Option in part, and purchased an additional 438,738 shares of common stock, see Note 11 for further discussion.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 5, 2025 | |
| 2023 | Mar 13, 2024 | |
| 2022 | Mar 8, 2023 | |
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.