Annual report pursuant to Section 13 and 15(d)

NET LOSS PER SHARE

v3.8.0.1
NET LOSS PER SHARE
12 Months Ended
Dec. 31, 2017
Earnings Per Share [Abstract]  
NET LOSS PER SHARE

NOTE 12: NET LOSS PER SHARE 

 

The Company accounts for and discloses net income (loss) per common share in accordance with 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 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 they have been excluded from the calculation.

 

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

 

    Year Ended December 31,  
    2017     2016  
Numerator                
Net loss   $ (8,122,581 )   $ (6,368,885 )
Deemed dividend attributable to preferred stock     (2,568,132 )        
Net loss attributable to common shareholders   $ (10,690,713 )   $ (6,368,885 )
Denominator                
Weighted average common shares outstanding used to compute net loss per share, basic and diluted     11,697,273       2,947,282  
Net loss per share of common stock, basic and diluted:   $ (0.91 )     (2.16 )

 

There are no potential common shares excluded from the calculation of net loss per diluted share for the years ended December 31, 2017 and 2016 because the effect of them would be anti-dilutive. For the year ended December 31, 2017 and 2016, the average price of our common stock was less than the exercise price of the vested stock options and exercisable warrants.