I.	Net (Loss) Income Per Share

Under the

two

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

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

obligation to fund losses. Diluted net (loss) income per share of common stock is computed under the

two

-class method by using the weighted average number of shares of common stock outstanding plus the potential dilutive effects of stock options and warrants. In addition, the Company analyzes the potential dilutive effect of the outstanding convertible securities under the if-converted method when calculating diluted (loss) income per share of common stock in which it is assumed that the outstanding convertible securities convert into common stock at the beginning of the period or date of issuance, if the convertible security was issued during the period. The Company reports the more dilutive of the approaches (

two

-class or if-converted) as its diluted net (loss) income per share of common stock during the period.

Diluted net loss per share of common stock is the same as basic net loss per share of common stock for the

three

and

nine

months ended

September 30, 2020

and the

three

and

nine

months ended

September 30, 2019

because the effects of potentially dilutive items were anti-dilutive for the respective periods. For the

three

and

nine

months ended

September 30, 2020

, certain dilutive items were anti-dilutive for the period and are presented in the table immediately below. 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 September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Deerfield Convertible Note		1,275,971		1,192,918		1,275,971		1,192,918
2021 Notes*		—		31,166,835		—		31,166,835
January 2020 Note		544,599		—		544,599		—
December 2019 Notes		9,844,933		—		9,844,933		—
Awards under equity incentive plans		5,670,659		4,620,891		5,670,659		4,620,891
Common stock warrants		2,423,077		500,000		2,423,077		2,423,077
Series A Convertible Preferred Stock		—		—		—		1,112,334
Series B-1 Convertible Preferred Stock		—		—		—		831,051
Total securities excluded from the calculation of weighted average number of shares of common stock outstanding		19,759,239		37,480,644		19,759,239		41,347,106

* Inclusive of 28,439,015 shares of Common Stock issuable (i) in exchange of the Optional Exchange Principal Amount, or (ii) upon conversion of the Series B-2 Preferred Stock issuable in exchange of the Optional Exchange Principal Amount.

The items which were dilutive for the

three

and

nine

months ended

September 30, 2020

are included in the reconciliation of basic net income per share of common stock to diluted net income per share of common stock below.

	Three months ended
	September 30, 2019
Basic net income per share of common stock:
Net income	$	3,063
Less: Net income attributable to participating securities		(348	)
Net income attributable to shares of common stock		2,715
Less: Dividends declared or accumulated		—
Undistributed net income attributable to shares of common stock, basic	$	2,715
Weighted average number of shares of common stock outstanding		30,127
Basic net income per share of common stock	$	0.09
Diluted net income per share of common stock:
Net income	$	3,063
Less: Fair value adjustment income related to Deerfield Warrant liability		(1,019	)
Less: Fair value adjustment income related to embedded Warrant Put Option		(135	)
Less: Fair value adjustment income related to KVK Warrant liability		—
Net income attributable to shares of common stock, diluted	$	1,909
Weighted average number of shares of common stock outstanding		30,127
Dilutive effect of Deerfield Warrant		—
Dilutive effect of Series A Preferred		1,112
Dilutive effect of Series B-1 Preferred		433
Weighted average number of shares of common stock outstanding, diluted		31,672
Diluted net income per share of common stock	$	0.06