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 Warrant, were not included in the calculation of the diluted loss per share because to do so would be anti-dilutive. The SWK Warrant price is 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 as of the second quarter of 2022 and has not declared any dividends, such inclusion of the participating securities related to the SWK Warrant (as common stock equivalents) would be anti-dilutive 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 Secured 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.

A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per common share for the three and six months ended June 30, 2022 is as follows:

	For the Three Months Ended June 30, 2022			For the Six Months Ended June 30, 2022
Numerator:
Net loss	$	(2,667,036	)	$	(11,846,040	)

Denominator:
Basic:
Weighted average shares of common stock outstanding		15,273,707			14,794,637

Diluted:
Weighted average shares of common stock outstanding		15,273,707			14,794,637
Effect of potentially dilutive shares (1)		2,407,693			1,577,900
Total weighted average shares of common stock and potentially dilutive shares		17,681,400			16,372,537

Net loss per common share:
Basic:
Net loss applicable to common stockholders	$	(2,667,036	)	$	(11,846,040	)
Weighted average shares of stock outstanding, basic		15,273,707			14,794,637
Basic net loss per common share	$	(0.17	)	$	(0.80	)

Diluted:
Net loss applicable to common shareholders, diluted (1)	$	(5,308,236	)	$	(13,524,840	)
Weighted average shares of stock outstanding, diluted		17,681,400			16,372,537
Diluted net loss per common share	$	(0.30	)	$	(0.83	)

(1) In calculating diluted net loss per share, we excluded the impact of changes in the fair value of the Secured Convertible Notes of $2.6 million and $1.7 million, for the three and six months ended June 30, 2022, respectively. The 2,407,693 shares and 1,577,900 shares for the three and six months ended June 30, 2022, respectively, are the weighted average shares associated with the original principal amount of the Secured Convertible Notes and the shares that may be issuable upon the conversion of accrued interest owed at the beginning of the period.

As of June 30, 2022 and 2021, the number of shares of common stock underlying potentially dilutive securities excluded from the calculation of diluted net loss per share, because our net loss meant that their inclusion would have been anti-dilutive for those periods, consists of: