Quarterly report pursuant to Section 13 or 15(d)

NET LOSS PER SHARE

v3.7.0.1
NET LOSS PER SHARE
6 Months Ended
Jun. 30, 2017
Earnings Per Share [Abstract]  
NET LOSS PER SHARE

NOTE 10: NET LOSS PER SHARE

 

The Company accounts for and discloses net loss per common share in accordance with FASB Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share. Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding. In addition, in computing the dilutive effect of convertible securities, the numerator is adjusted to add back any convertible preferred dividends. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares that would have been outstanding during the period assuming the issuance of common shares for all potential dilutive common shares outstanding. Potential common shares consist of shares issuable upon the conversion of Series A preferred stock, and potential future exercises of outstanding stock options and common stock warrants. Because the inclusion of potential common shares would be anti-dilutive for all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. 

 

The following table summarizes the Company’s calculation of net loss per common share:

 

 

                         
    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
    2017     2016     2017     2016  
Net Loss Per share                        
Numerator                        
                         
Net loss   $ 2,241,489     $ 1,722,383     $ 3,945,043     $ 4,049,920  
Deemed dividend attributable to preferred stock   $ 2,568,132             $ 2,568,132          
Net loss attributable to common shareholders   $ 4,809,621     $ 1,722,383     $ 6,513,175     $ 4,049,920  
Denominator                                
Weighted average common shares outstanding     7,476,046       2,587,871       5,641,671       2,485,853  
Basic and diluted net loss per share   $ 0.64     $ 0.67     $ 1.15     $ 1.63  

 

 

The following table sets forth the number of potential common shares excluded from the calculation of net loss per diluted share for the three months and six months ended June 30, 2017 and 2016 because the effect of them would be anti-dilutive: 

 

    Three Months Ended  
June 30,
    Six Months Ended
June 30,
 
    2017     2016     2017     2016  
Options to purchase common stock     1,121,567       394,090       754,093       394,090  
Series A convertible preferred stock     2,184,356               1,098,212          
Warrants to purchase common stock     6,139,797       402,228       3,286,862       402,228  
Total     9,445,720       796,318       5,139,167       796,318