Net Loss per Common Share

3 Months Ended

12 Months Ended

Jun. 30, 2021

Mar. 31, 2021

Note 13—Net Loss per Common Share

Basic net loss per common share is computed by dividing net loss attributable to Roivant Sciences Ltd. by the weighted-average number of common stock outstanding during the period. Diluted net loss per common share is computed by dividing the net loss attributable to Roivant Sciences Ltd. by the diluted weighted-average number of common stock outstanding during the period.

For periods of loss, diluted loss per share is calculated similar to basic loss per share as the effect of including all potentially dilutive common share equivalents is anti-dilutive. All outstanding common stock equivalents have been excluded from the computation of diluted loss per share because their effect was anti-dilutive due to the net loss. Refer to Note 8, “Share-Based Compensation” and Note 4, “Sumitomo Transaction Agreement” for additional detail regarding outstanding common stock equivalents.

Note 18—Earnings per Common Share

The computations of the numerator to derive the basic and diluted earnings per share amounts presented on the face of the accompanying consolidated statements of operations are as follows (in thousands):


	Years Ended March 31,
	2021			2020
Loss from continuing operations, net of tax	$	(900,233	)	$	(568,110	)
Net loss from continuing operations, net of tax, attributable to noncontrolling interest		(90,999	)		(48,716	)

Loss from continuing operations, net of tax, attributable to Roivant Sciences Ltd.		(809,234	)		(519,394	)
Deemed dividend on repurchase of redeemable noncontrolling interest relating to subsidiary convertible and redeemable preferred stock (1)		—			(77,777	)

Basic and diluted loss from continuing operations, net of tax, attributable to Roivant Sciences Ltd.	$	(809,234	)	$	(597,171	)

Income from discontinued operations, net of tax	$	—		$	1,578,426
Net loss from discontinued operations, net of tax, attributable to noncontrolling interest		—			(141,477	)

Net income from discontinued operations, net of tax, attributable to Roivant Sciences Ltd.	$	—		$	1,719,903

Basic and diluted income from discontinued operations, net of tax	$	—		$	1,719,903

Basic and diluted net (loss) income attributable to Roivant Sciences	$	(809,234	)	$	1,122,732

(1)

Consideration paid in excess of carrying value for the repurchase of redeemable noncontrolling interest relating to subsidiary convertible and redeemable preferred stock of $77.8 million is considered a deemed dividend and, for purposes of calculating net loss per share, increases the loss from continuing operations, net of tax, attributable to Roivant Sciences Ltd. for the year ended March 31, 2020. See Note 10, “Shareholders’ Equity and Redeemable Noncontrolling Interest.”

Basic net (loss) income per common share is computed by dividing net (loss) income attributable to Roivant Sciences Ltd. by the weighted-average number of common stock outstanding during the period. Diluted net (loss) income per common share is computed by dividing the net income (loss) attributable to Roivant Sciences Ltd. by the diluted weighted-average number of common stock outstanding during the period.

For periods of loss from continuing operations, diluted loss per share is calculated similar to basic loss per share as the effect of including all potentially dilutive common share equivalents is anti-dilutive. All outstanding common stock equivalents have been excluded from the computation of diluted loss per share because their

effect was anti-dilutive due to the loss from continuing operations. Refer to Note 11, “Share-Based Compensation” and Note 5, “Sumitomo Transaction Agreement” for additional detail regarding outstanding common stock equivalents.