Unicycive Therapeutics, Inc. Earnings Per Share Disclosure
15. Net loss per share
The Company computes net loss per share using the two-class method. The two-class method uses an earnings allocation formula that determines net loss per share for common stock and any participating securities according to dividends declared and participation rights in undistributed earnings.
Diluted net loss per share includes the potential dilutive effect of common stock equivalents as if such securities were converted or exercised during the period, when the effect is dilutive. Common stock equivalents include: (i) outstanding stock options and restricted stock units; (ii) common stock to be issued upon the assumed exercise of the Company’s common stock warrants; and (iii) prior to issuance, the issuable warrants related to the Company’s March private placement financing. Because the impact of these items is generally anti-dilutive during periods of net loss, there is no difference between basic and diluted income (loss) per common share for periods with net losses.
The following table sets forth the computation of basic and diluted net loss per share of common and preferred stock (in thousands, except share and per share data):
| Year Ended December 31, | Year Ended December 31, | |||||||
| 2023 | 2024 | |||||||
| Numerator: | ||||||||
| Net loss | $ | (30,544 | ) | $ | (36,729 | ) | ||
| Less: Deemed dividends on Series A-1 Preferred Stock | (867 | ) | ||||||
| Less: Dividends on Series B-1 Preferred Stock | (1,095 | ) | ||||||
| Net loss attributable to common shares, basic and diluted | (31,411 | ) | (37,824 | ) | ||||
| Denominator: | ||||||||
| Weighted-average shares outstanding used in computing net loss per share attributable to common stockholders, basic and diluted | 24,539,309 | 66,985,129 | ||||||
| Net loss per share attributable to common stockholders, basic and diluted | $ | (1.28 | ) | $ | (0.56 | ) | ||
The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive:
| Year Ended December 31, | Year Ended December 31, | |||||||
| 2023 | 2024 | |||||||
| Options to purchase common stock | 10,302,086 | 13,671,140 | ||||||
| Warrants to purchase common stock | 4,784,193 | 4,784,193 | ||||||
| Warrants to purchase convertible preferred stock | 160,958,167 | 160,958,167 | ||||||
| Total | 6,126,863 | 179,413,500 | ||||||
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.