Net Loss Per Share

Net loss per share was calculated by dividing net loss by the weighted average number of common shares outstanding for the three months ended September 30, 2018 and 2017.



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2018			2017			2018			2017
Net loss	$	(10,116	)	$	(14,273	)	$	(53,759	)	$	(51,879	)
Shares used in computing basic and diluted net loss per share	85,226			83,496			84,487			83,225
Basic and diluted net loss per share	$	(0.12	)	$	(0.17	)	$	(0.64	)	$	(0.62	)

The following outstanding Company securities, using the treasury stock method, were excluded from the above calculations of net loss per share because their impact would have been anti-dilutive:



	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2018	2017	2018	2017
Common stock options	80	338	181	543
Restricted stock awards	120	117	121	119
Restricted stock units	148	98	344	205
Total	348	553	646	867

Conversion of Senior Notes

As discussed in Note 6 of the Notes to the Condensed Consolidated Financial Statements, in December 2013, the Company issued $86.3 million in aggregate principal amount of the 2.25% Senior Notes in an underwritten public offering. In November 2015, the Company also issued $125.0 million in aggregate principal amount of the 3.25% Senior Notes in an underwritten public offering. Upon any conversion, the Senior Notes may be settled, at the Company’s election, in cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock. For purposes of calculating the maximum dilutive impact, the Company presumed that the Senior Notes will be settled in common stock with the resulting potential common shares included in diluted earnings per share if the effect is more dilutive. The effect of the conversion of the Senior Notes is excluded from the calculation of diluted loss per share because the impact of these securities would be anti-dilutive.

Deerfield Warrants

On April 3, 2017, the Company entered into a Facility Agreement (the “Facility Agreement”) with Deerfield, pursuant to which Deerfield agreed to loan to the Company up to $120.0 million, subject to the terms and conditions set forth in the Facility Agreement (the “Term Loan”). Pursuant to the terms of the Facility Agreement, the Company issued warrants to Deerfield to purchase an aggregate of 6,470,000 shares of common stock of the Company at an exercise price of $9.23 per share (the “Deerfield Warrants”). On August 9, 2018, the Company entered into an Amended and Restated Facility Agreement (the “Amended Facility Agreement”) with Deerfield, pursuant to which Deerfield and the Company cancelled and extinguished the $40.5 million principal amount 3.25% Senior Notes held by Deerfield in exchange for an additional $40.5 million of indebtedness under the Amended Facility Agreement (as a last-out waterfall tranche under the Amended Facility Agreement). Pursuant to the terms of the Amended Facility Agreement, the Company issued warrants to Deerfield to purchase an aggregate of 8,750,001 shares of common stock of the Company at an exercise price of $4.71 per share (the “New Deerfield Warrants”). The number of shares of common stock of the Company into which the Deerfield Warrants and the New Deerfield Warrants (collectively the “Warrants”) are exercisable and the exercise prices of the Warrants will be adjusted to reflect any stock splits, recapitalizations or similar adjustments in the number of outstanding shares of common stock of the Company. Refer to Note 6 of the Notes to the Condensed Consolidated Financial Statements for further discussion.

The potential dilutive effect of these securities is shown in the chart below:



	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2018	2017	2018	2017
Conversion of the Notes	8,317	11,939	8,317	11,939
Deerfield Warrants	6,470	6,470	6,470	6,470
New Deerfield Warrants	8,750	—	8,750	—

The effect of the contingently issuable common stock is excluded from the calculation of basic net loss per share until all necessary conditions for issuance have been satisfied. Refer to Note 9 of the Notes to the Condensed Consolidated Financial Statements for further discussion.