Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2021

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 months ended March 31, 2021 and 2020, 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
	March 31,
	2021	2020
Basic:
Weighted average common shares outstanding	49,917,990	46,724,951
Diluted:
Weighted average common shares outstanding - Basic	49,917,990	46,724,951
Common stock equivalents*	—	—
Denominator for diluted net loss per share	49,917,990	46,724,951

*	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
	March 31,
	2021		2020
Net loss - basic and diluted	$	(23,301)	$	(28,922)
Weighted-average common shares outstanding:
Basic and diluted		49,917,990		46,724,951
Net loss per share, Basic and Diluted:	$	(0.47)	$	(0.62)

As of March 31, 2021, 5,918,808 stock options and 401,831 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.

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 10, Collaboration and Licensing Agreements).

As of March 31, 2020, 4,930,590 stock options and 355,834 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.