4. Net Loss per Share

Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period. The Company’s potentially dilutive shares, which include outstanding common stock options, unvested restricted stock and preferred stock, have not been included in the computation of diluted net loss per share for any of the periods presented as the result would be anti-dilutive. Such potentially dilutive shares of common stock at September 30, 2018 and 2017 consisted of the following:


	September 30,
	2018		2017
Stock options		4,569,468		4,122,335
Unvested restricted stock		1,164,352		1,330,492
Preferred stock		52,583,921		22,398,582

		58,317,741		27,851,409

The Series 1 preferred stock automatically converts into shares of common stock upon the date the first approval in the United States of (i) a Ziopharm Product, as defined in and developed under the Channel Agreement, or (ii) a Product, as defined in and developed under the GvHD Agreement, or (iii) a Product as defined in and developed under the Ares Trading Agreement is publicly announced. Assuming a conversion event date of September 30, 2018, the Series 1 preferred stock would convert into 52,583,921 shares of common stock using the greater of (i) the volume weighted average closing price of the Company’s Common Stock as reported by the Nasdaq Stock Market, LLC over the previous 20 trading days ending on the conversion event date or (ii) $1.00 per share. See Note 6 and Note 9 for additional disclosure regarding the 2016 ECP Amendment and 2016 GvHD Amendment, valuation methodology and significant assumptions.

As discussed in Note 1, in consideration of the Company entering into the License Agreement, Intrexon forfeited and returned to the Company all shares of the Company’s Series 1 Preferred Stock held by or payable to Intrexon as of the date of the License Agreement. No shares of Series 1 Preferred Stock are currently outstanding as of the filing date of this Quarterly Report.