Trevi Therapeutics, Inc. Earnings Per Share Disclosure
The following table summarizes the computation of basic and diluted net loss per share attributable to common stockholders of the Company:
|
|
Year Ended December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Net loss |
|
$ |
(47,911 |
) |
|
$ |
(29,065 |
) |
Weighted average common shares used in net loss per share attributable to common stockholders, basic and diluted |
|
|
101,971,873 |
|
|
|
99,033,373 |
|
Basic and diluted net loss per common share outstanding |
|
$ |
(0.47 |
) |
|
$ |
(0.29 |
) |
Basic shares outstanding includes the weighted average effect of the Company’s pre-funded warrants from the date of issuance, the exercise of which requires little or no consideration for the delivery of shares of common stock. As of December 31, 2024 and 2023, the Company had pre-funded warrants to purchase 23,211,642 and 31,227,802 shares of common stock outstanding, respectively, which were issued in the April 2022 Private Placement and the September 2022 Offering, which warrants are included in the weighted average common shares used in calculating the net loss per share attributable to common stockholders, basic and diluted, for the years ended December 31, 2024 and 2023.
The Company’s potential dilutive securities, which include stock options and warrants that are not pre-funded, have been excluded from the computation of diluted net loss per share attributable to common stockholders whenever the effect of including them would be to reduce the net loss per share. In periods where there is a net loss, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The following potential common shares, presented based on shares outstanding as of December 31, 2024 and 2023, respectively, were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:
|
|
Shares as of December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Warrants |
|
|
9,703,704 |
|
|
|
9,703,704 |
|
Stock Options |
|
|
7,844,254 |
|
|
|
5,312,300 |
|
Total potential common shares |
|
|
17,547,958 |
|
|
|
15,016,004 |
|
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.