Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 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 and six months ended June 30, 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		Six Months Ended
	June 30,		June 30,
	2021	2020	2021	2020
Basic:
Weighted average common shares outstanding	50,059,984	46,799,703	49,989,379	46,762,327
Diluted:
Weighted average common shares outstanding - Basic	50,059,984	46,799,703	49,989,379	46,762,327
Common stock equivalents*	—	—	—	—
Denominator for diluted net loss per share	50,059,984	46,799,703	49,989,379	46,762,327

*	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				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Net loss - basic and diluted	$	(30,745)	$	(25,068)	$	(54,046)	$	(53,990)
Weighted-average common shares outstanding:
Basic and diluted		50,059,984		46,799,703		49,989,379		46,762,327
Net loss per share, Basic and Diluted:	$	(0.61)	$	(0.54)	$	(1.08)	$	(1.15)

As of June 30, 2021, 5,995,223 stock options and 409,031 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 June 30, 2020, 4,964,766 stock options and 272,000 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.