| Net Loss Per Share |
11. Net Loss Per Share
The Company calculates basic and diluted net loss per share in conformity with the two-class method required for participating securities. For the years ended December 31, 2023 and 2022, the Company had voting and non-voting common stock outstanding. Since the rights of the voting and non-voting common stock are identical, except with respect to voting, the undistributed losses of the Company have been allocated on a proportionate basis to the two classes. Basic net loss per share of common stock is computed by dividing the net loss per share of common stock by the weighted average number of shares of common stock outstanding for the period. The weighted-average shares of common stock outstanding as of December 31, 2023 and 2022 included outstanding pre-funded warrants to purchase up to an aggregate of 1,168,054 and 5,942,036 shares of common stock, respectively.
Diluted net loss per share is calculated using the if-converted method, which assumes conversion of all non-voting common stock to voting common stock.
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Year ended December 31, 2023 |
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Voting common stock |
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Non-voting common stock |
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Basic net loss per share: |
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Numerator |
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Allocation of undistributed losses |
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$ |
(64,776 |
) |
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$ |
(2,899 |
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Denominator |
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Weighted average number of shares used in basic per share computation |
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39,192,445 |
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1,753,505 |
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Net loss per share, basic |
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$ |
(1.65 |
) |
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$ |
(1.65 |
) |
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Diluted net loss per share: |
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Numerator |
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Allocation of undistributed losses for basic computation |
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$ |
(64,776 |
) |
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$ |
(2,899 |
) |
Reallocation of undistributed losses as a result of conversion of
non-voting to voting common shares |
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(2,899 |
) |
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— |
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Allocation of undistributed losses |
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$ |
(67,675 |
) |
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$ |
(2,899 |
) |
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Denominator |
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Weighted average number of shares used in basic per share computation |
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39,192,445 |
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1,753,505 |
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Add: conversion of non-voting to voting common shares outstanding |
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1,753,505 |
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— |
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Weighted average number of shares used in diluted per share computation |
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40,945,950 |
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1,753,505 |
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Net loss per share, diluted |
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$ |
(1.65 |
) |
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$ |
(1.65 |
) |
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Year ended December 31, 2022 |
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Voting common stock |
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Non-voting common stock |
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Basic net loss per share: |
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Numerator |
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Allocation of undistributed losses |
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$ |
(46,966 |
) |
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$ |
(6,009 |
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Denominator |
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Weighted average number of shares used in basic per share computation |
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26,014,159 |
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3,328,750 |
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Net loss per share, basic |
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$ |
(1.81 |
) |
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$ |
(1.81 |
) |
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Diluted net loss per share: |
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Numerator |
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Allocation of undistributed losses for basic computation |
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$ |
(46,966 |
) |
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$ |
(6,009 |
) |
Reallocation of undistributed losses as a result of conversion of
non-voting to voting common shares |
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(6,009 |
) |
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— |
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Allocation of undistributed losses |
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$ |
(52,975 |
) |
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$ |
(6,009 |
) |
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Denominator |
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Weighted average number of shares used in basic per share computation |
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26,014,159 |
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3,328,750 |
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Add: conversion of non-voting to voting common shares outstanding |
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3,328,750 |
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— |
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Weighted average number of shares used in diluted per share computation |
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29,342,909 |
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3,328,750 |
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Net loss per share, diluted |
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$ |
(1.81 |
) |
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$ |
(1.81 |
) |
The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net loss per share, as their effect is anti-dilutive:
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As of December 31, |
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2023 |
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2022 |
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Stock options to purchase common stock |
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8,141,035 |
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6,013,384 |
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8,141,035 |
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6,013,384 |
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