Net Loss per Share

3 Months Ended

Mar. 31, 2023

Note 8. Net loss per share

Basic net loss per share is computed by dividing net loss by the weighted-average number of common stock actually outstanding during the period. Shares of common stock that are potentially issuable for little or no cash consideration at issuance, such as the Company's pre-funded warrants issued in March 2022, are considered outstanding common stock and are included in the calculation of basic and diluted net loss per share in connection with ASC 260 Earnings Per Shares. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common stock outstanding and dilutive potential common stock that would be issued upon the exercise or vesting of common stock awards and exercise of common stock warrants that are not pre-funded. The Company applies the two-class method to calculate basic and diluted earnings per share as its warrants issued in March 2022 are participating securities. However, the two-class method does not impact the net loss per share of common stock as the 2022 common warrants issued in March 2022 do not participate in losses. For the three months ended March 31, 2023 and 2022, the effect of issuing potential common stock is anti-dilutive due to the net losses in those periods and therefore the number of shares used to compute basic and diluted net loss per share are the same in each of those periods.

The following securities are the weighted-average common shares outstanding used to calculate basic and diluted net loss per common share:


	As of March 31,
	2023		2022
Common stock		8,166,385		5,334,712
2022 pre-funded warrants		1,280,965		-
Total		9,447,350		5,334,712

The following potentially dilutive securities outstanding have been excluded from the computations of diluted weighted-average shares outstanding for the periods presented because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares):


	As of March 31,
	2023		2022
Warrants issued to 2010/2012 convertible note holders to purchase common stock		6,804		6,804
Options to purchase common stock		926,325		516,445
Outstanding restricted stock units		9,534		19,233
Warrants issued to underwriter to purchase common stock		1,100		1,100
2018 PIPE warrants		34,241		34,241
2022 common warrants		4,000,000		4,000,000
Total		4,978,004		4,577,823