Loss per share

6 Months Ended

Jun. 30, 2024

Note 3. Loss per share

For the three and six months ended June 30, 2023, for the purpose of calculating loss per share and as a result of the common control transaction as described in Note 1. Description of Business and Summary of Significant Accounting Policies, the weighted-average number of shares used in the calculation reflects the outstanding shares of Wattpad as if the equity structure of the Parent (the accounting acquirer) was retroactively stated to reflect the number of shares issued in the Wattpad Transfer.

Basic loss per share is computed using the weighted-average number of outstanding shares of common stock during the period, including vested restricted stock units ("RSUs"). Diluted loss per share is computed using the weighted average number of outstanding shares of common stock and, potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of incremental shares issuable upon the assumed exercise of stock options and vesting of unvested RSUs. For the three and six months ended June 30, 2024 and June 30, 2023, the Company's Korean subsidiaries and equity method investees each had outstanding stock options that will be settled in each respective subsidiary or equity method investee's common shares. The numerator of the Company's loss per share includes the Parent's proportionate share of the diluted earnings or loss per share impact of outstanding subsidiaries and equity method investees' stock options.

The following table sets forth the computation of basic and diluted loss per share, as adjusted on a retrospective basis to reflect the Stock Split as discussed in Note 1. Description of Business and Summary of Significant Accounting Policies, for the three months ended June 30, 2024 and June 30, 2023, respectively, and for the six months ended June 30, 2024 and June 30, 2023, respectively (in thousands of USD, except share and per share amounts):


	Three Months Ended						Six Months Ended
	June 30, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Basic loss per share:
Net loss attributable to WEBTOON Entertainment Inc.	$	(76,885	)	$	(20,118	)	$	(70,693	)	$	(37,679	)
Add: allocation to subsidiary / equity method investee participating security1		—			47			123			105
Net loss attributable to WEBTOON Entertainment Inc.	$	(76,885	)	$	(20,071	)	$	(70,570	)	$	(37,574	)
Shares used in computation:
Weighted-average common shares outstanding		110,102,868			109,505,150			109,804,009			109,505,150
Basic loss per share:	$	(0.70	)	$	(0.18	)	$	(0.64	)	$	(0.34	)
Diluted loss per share:
Net loss attributable to WEBTOON Entertainment Inc.	$	(76,885	)	$	(20,071	)	$	(70,570	)	$	(37,574	)
Add: dilutive impact of subsidiary / equity method investee stock options		(5	)		(0	)		(4	)		—
Diluted net loss attributable to WEBTOON Entertainment Inc.	$	(76,890	)	$	(20,071	)	$	(70,574	)	$	(37,574	)
Shares used in computation:
Weighted-average common shares outstanding		110,102,868			109,505,150			109,804,009			109,505,150
Diluted loss per share	$	(0.70	)	$	(0.18	)	$	(0.64	)	$	(0.34	)

Represents net loss allocable to Jakga Company Inc. ("Jakga") redeemable convertible preferred stock which is a participating security per ASC 260. Jakga became an equity method investee from a subsidiary when it was deconsolidated on March 28, 2024 (Refer to Note 14. Disposition for additional information for Jakga disposition).

The following potentially dilutive outstanding securities were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period:


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Stock options		11,058,779		9,108,960		11,058,779		9,108,960
Unvested RSUs		2,710,567		—		2,710,567		—
Subsidiary / equity method investee stock options		6,000		367,059		7,800		645,059
Total		13,775,346		9,476,019		13,777,146		9,754,019