Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2020

15. Net Income (loss) per Share

The Company computes net income (loss) per share in accordance with ASC 260-10, Earnings per Share (see Note 2, Significant Accounting Policies – Income (Loss) per Share).

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



	Year Ended December 31,
	2020	2019	2018
Basic:
Weighted average common shares outstanding	47,413,250	42,669,333	35,892,786
Diluted:
Weighted average common shares outstanding - Basic	47,413,250	42,669,333	35,892,786
Common stock equivalents*	501,780	—	—
Denominator for diluted net income (loss) per share	47,915,030	42,669,333	35,892,786

*	For the year end December 31, 2020, common stock equivalents include dilutive stock options and restricted stock units. For the years ended December 31, 2019 and 2018, no amounts were considered as their effects would have been anti-dilutive due to net losses for those periods.

Basic and diluted net income (loss) per share is computed as follows:



	Year Ended December 31,
	2020		2019		2018
Net income (loss) - basic and diluted	$	8,410	$	(106,373)	$	(74,013)

Weighted-average common shares outstanding - basic		47,413,250		42,669,333		35,892,786
Effect of dilutive securities:
Stock options		481,254		—		—
Restricted stock units		20,526		—		—
Weighted-average common shares outstanding - diluted		47,915,030		42,669,333		35,892,786

Net income (loss) per share:
Basic	$	0.18	$	(2.49)	$	(2.06)
Diluted	$	0.18	$	(2.49)	$	(2.06)

As of December 31, 2020, 5,469,393 stock options and 235,250 restricted stock units were outstanding, which could potentially dilute basic earnings per share in the future. 481,254 of these outstanding stock options and 20,526 of these restricted stock units were considered dilutive and included in the computation of diluted net income per share for the year ended December 31, 2020.

In addition, the Company entered into the Vifor Agreement in October 2020. The Company will be eligible to receive an additional $50,000 common stock investment upon U.S. regulatory approval of CR845/difelikefalin at a 20% premium to the 30-day trailing average price of the Company’s common stock as of such date, which could potentially dilute basic earnings per share in the future (see Note 11, Collaboration and Licensing Agreements).

As of December 31, 2019, 4,450,517 stock options and 119,834 restricted stock units 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 as a result of the net loss for the period.

As of December 31, 2018, 4,004,422 stock options 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 as a result of the net loss for the period.