Net Loss Per Share

The Company computes earnings per share of its common stock and convertible preferred stock using the two-class method required for participating securities. The convertible preferred stock is considered a participating security because any dividends declared will be distributed among the holders of common stock and convertible preferred stock on a pro rata basis based on the number of shares of common stock held by each holder as of the dividend record date. The number of shares of common stock held by each holder will be determined on an as-converted to common stock basis, based on the then-effective Preferred Exchange Rate and without giving effect to the Ownership Cap (see Note 6). Further, the convertible preferred stock does not have a contractual obligation to share in the losses of the Company therefore its impact is excluded from the calculation of earnings per share in periods of net losses.

Because of the net losses in the three months ended March 31, 2020 and 2019, the following outstanding Company securities, using the treasury stock method, were excluded from the calculations of net loss per share because the effect would have been anti-dilutive:



	Three Months Ended March 31,
	2020	2019
Restricted stock awards	2,916	2,690
Restricted stock units	101,492	6,578
Warrants	1,522,002	—
Total	1,626,410	9,268

For purposes of calculating the maximum dilutive impact, it is presumed that the convertible notes will be settled in common stock, all conversion features within the term loan facility will be exercised and the convertible preferred stock will be converted into its common stock equivalent 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 convertible senior notes, term loan facility and convertible preferred stock is excluded from the calculation of diluted loss per share because the impact of these securities would be anti-dilutive.

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



	Three Months Ended March 31,
	2020	2019
Convertible notes	13,049,893	755,695
Conversion features under term loan facility	31,430,001	—
Convertible preferred stock	1,464,900	—

The effect of the contingently issuable common stock (see Note 9) and Nellix Exchanges under the term loan facility (see Note 6) are excluded from the calculation of basic net loss per share until all necessary conditions for issuance have been satisfied.