Net Income (Loss) Per Share

9 Months Ended

Sep. 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 nine months ended September 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		Nine Months Ended
	September 30,		September 30,
	2021	2020	2021	2020
Basic:
Weighted average common shares outstanding	50,114,710	46,885,424	50,031,615	46,803,659
Diluted:
Weighted average common shares outstanding - Basic	50,114,710	46,885,424	50,031,615	46,803,659
Common stock equivalents*	—	—	—	—
Denominator for diluted net loss per share	50,114,710	46,885,424	50,031,615	46,803,659

*	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,
	2021		2020		2021		2020
Net loss - basic and diluted	$	(1,013)	$	(16,509)	$	(55,059)	$	(70,499)
Weighted-average common shares outstanding:
Basic and diluted		50,114,710		46,885,424		50,031,615		46,803,659
Net loss per share, Basic and Diluted:	$	(0.02)	$	(0.35)	$	(1.10)	$	(1.51)

As of September 30, 2021, 5,974,549 stock options and 365,029 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 issued 3,282,391 shares of its common stock in October 2021 upon U.S. regulatory approval of KORSUVA injection in August 2021. These shares were not included in the computation of basic or diluted net loss per share.

As of September 30, 2020, 5,265,642 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.