Note I - Net Loss Per Share

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

I. Net Loss Per Share

Under the

two

-class method, for periods with net income, basic net income per common share is computed by dividing the net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Net income attributable to common stockholders is computed by subtracting from net income the portion of current year earnings that participating securities would have been entitled to receive pursuant to their dividend rights had all of the year’s earnings been distributed.

No

such adjustment to earnings is made during periods with a net loss as the holders of the participating securities have

no

obligation to fund losses. Diluted net earnings per common share is computed under the

two

-class method by using the weighted average number of shares of common stock outstanding plus, for periods with net income attributable to common stockholders, the potential dilutive effects of stock options and warrants. In addition, the Company analyzes the potential dilutive effect of the outstanding participating securities under the if-converted method when calculating diluted earnings per share in which it is assumed that the outstanding participating securities convert into common stock at the beginning of the period. The Company reports the more dilutive of the approaches (

two

-class or if-converted) as its diluted net earnings per share during the period.

Diluted net loss per share

 is the same as basic net loss per share for all periods presented because the effects of potentially dilutive items were anti-dilutive given the Company's net loss. The following securities, presented on a common stock equivalent basis, have been excluded from the calculation of weighted average number of shares of common stock outstanding because their effect is anti-dilutive:

	Three months ended March 31,
	2019		2018
Warrants to purchase common stock		2,527,763		2,027,763
Awards under equity incentive plans		5,117,655		3,631,496
Deerfield Convertible Note		1,166,998		1,750,497
2021 Notes		4,481,182		5,040,914
Series A Convertible Preferred Stock		1,112,334		—
Total securities excluded from the calculation of weighted average number of shares of common stock outstanding		14,405,932		12,450,670