Quarterly report pursuant to Section 13 or 15(d)

NET INCOME (LOSS) PER SHARE

v3.8.0.1
NET INCOME (LOSS) PER SHARE
9 Months Ended
Sep. 30, 2017
Earnings Per Share [Abstract]  
NET INCOME (LOSS) PER SHARE

NOTE 10: NET INCOME (LOSS) PER SHARE

 

The Company accounts for and discloses net income (loss) per common share in accordance with FASB Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share. Basic net income (loss) per common share is computed by dividing net income (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 income (loss) per common share is computed by dividing net income (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 convertible 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 except for the three months ended September 30, 2016, diluted net loss per common share is the same as basic net loss per common share for those periods. Diluted net income per share was the same as basic net income per share for the three months end September 30, 2016 as the impact of potential common shares included in earnings per share was insignificant.

 

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

 

    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
    2017     2016     2017     2016  
Net income (loss) Per share                         
Numerator                        
Net income (loss)    $ (2,184,510 )   $ 204,689     $

(6,129,553 

)   $ (3,845,235 )
Deemed dividend attributable to preferred stock                     (2,568,132 )        
Net income (loss) attributable to common shareholders    $

(2,184,510 

)   $ 204,689     $

(8,697,685 

)   $ (3,845,235 )
Denominator                                
Weighted average common shares outstanding     12,411,145       3,024,393       7,886,210       2,665,904  
Basic and diluted net income (loss) per share   $ (0.18 )   $ 0.07     $ (1.10 )   $ (1.44 )

 

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

 

    Three Months Ended  
September 30,
    Nine Months Ended
September 30,
 
    2017     2016     2017     2016  
Options to purchase common stock     2,118,021       390,424       1,206,057       390,424  
Series A convertible preferred stock     509,762               895,809          
Warrants to purchase common stock     1,660,379       402,228       2,726,751       402,228  
Total     4,288,162       792,652       4,828,617       792,652