Basic net loss per share is computed by dividing the net loss in each period by the weighted-average number of common shares outstanding during such period. Diluted net loss per share is computed similarly to basic net loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. For the periods presented, common stock equivalents, consisting of stock-based awards and the SWK Warrants, were not included in the calculation of the diluted loss per share because to do so would be antidilutive. The exercise prices of the SWK Warrants are subject to a proportionate adjustment in the event of a stock dividend or stock split. The Company concluded that they should be deemed participating securities. However, as the Company is currently operating in a net loss position for the three month period ended March 31, 2023 and has not declared any dividends, such inclusion of the participating securities related to the SWK Warrants (as common stock equivalents) would be antidilutive and thus would be excluded from the calculation of net loss per share. When calculating diluted net loss per share, the Company includes, only if dilutive, the potential common shares associated with the Marathon Convertible Notes using the “if-converted” method, which adjusts the numerator for any impact to earnings for the period and includes in the denominator the shares assumed to be converted at the beginning of the period.

Additionally, the Company included the common shares associated with the Pre-Funded Warrants of 585,306 shares in its calculations of weighted average shares outstanding for the three months ended March 31, 2023 for basic and diluted earnings per share because the exercise of such a warrant is virtually assured since the exercise price is nonsubstantive.

As of March 31, 2023 and 2022, the number of shares of common stock underlying potentially dilutive securities excluded from the calculation of diluted net loss per share, because the company’s net loss meant that their inclusion would have been antidilutive for those periods, consist of:


	March 31,
	2023		2022
Options to purchase common stock		3,274,098		2,796,100
Shares associated with Marathon Convertible Note		2,400,000		2,400,000
March 2023 Offering warrants		2,920,306		—
SWK Warrants		500,000		150,000
Total		9,094,404		5,346,100

The application of the “if-converted” method to the 2.4 million shares associated with the Secured Convertible Notes, as of the beginning of the period, was not applicable for the three months ended March 31, 2023 because to do so would have been antidilutive.