Net Loss Per Share

9 Months Ended

Sep. 30, 2020

12. Net Loss Per Share

The Company computes basic net income (loss) per share by dividing net income (loss) by the weighted-average number of shares of common stock outstanding. Diluted net income per share includes the potential dilutive effect of common stock equivalents as if such securities were exercised during the period, when the effect is dilutive. Common stock equivalents may include outstanding stock options or restricted stock units, which are included using the treasury stock method when dilutive. For the three and nine months ended September 30, 2020 and 2019, the Company excluded the effects of potentially dilutive shares that were outstanding during those respective periods from the denominator as their inclusion would be anti-dilutive due to the Company’s net losses during those periods.

The denominators used in the net loss per share computations are as follows:


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2020	2019	2020	2019
Basic:
Weighted average common shares outstanding	46,885,424	44,517,134	46,803,659	41,314,044
Diluted:
Weighted average common shares outstanding - Basic	46,885,424	44,517,134	46,803,659	41,314,044
Common stock options*	—	—	—	—
Denominator for diluted net loss per share	46,885,424	44,517,134	46,803,659	41,314,044

*	No amounts were considered as their effects would be anti-dilutive.

Basic and diluted net loss per share are computed as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Net loss	$	(16,509)	$	(32,842)	$	(70,499)	$	(77,762)
Weighted-average common shares outstanding:
Basic and Diluted		46,885,424		44,517,134		46,803,659		41,314,044
Net loss per share, Basic and Diluted	$	(0.35)	$	(0.74)	$	(1.51)	$	(1.88)

As of September 30, 2020 and 2019, 5,265,642 and 4,575,454 stock options, respectively, were outstanding, which could potentially dilute basic earnings per share in the future, but were not included in the computation of diluted net loss per share because to do so would have been anti-dilutive. In addition, 236,000 unvested restricted stock units issued to executive officers that were outstanding at September 30, 2020 were also not included in the computation of diluted net loss per share because to do so would have been anti-dilutive. The 36,000 unvested restricted stock units granted in June 2020 to the non-employee members of the Board of Directors were also not included in the computation of diluted net loss per share because to do so would have been anti-dilutive (see Note 13, Stock-Based Compensation).

In October 2020, the Company issued 2,939,552 shares of its common stock to Vifor at a price per share of $17.0094 for an aggregate investment of $50,000 in connection with the license agreement entered into with Vifor (see Note 16, Subsequent Events).