13. Net Loss per Share

Net Loss per Share Attributable to Common Shareholders of Biohaven Pharmaceutical Holding Company Ltd.

Basic and diluted net loss per share attributable to common shareholders of Biohaven Pharmaceutical Holding Company Ltd. was calculated as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016

Numerator:
Net loss	$	(42,915	)	$	(28,260	)	$	(100,108	)	$	(38,065	)
Net loss attributable to non-controlling interests	—			50			—			69
Accretion of beneficial conversion feature on Series A preferred shares	—			—			(12,006		)	—

Net loss attributable to common shareholders of Biohaven Pharmaceutical Holding Company Ltd.	$	(42,915	)	$	(28,210	)	$	(112,114	)	$	(37,996	)


Denominator:
Weighted average common shares outstanding—basic and diluted	35,930,698			13,050,446			25,102,920			12,447,153


Net loss per share attributable to common shareholders of Biohaven Pharmaceutical Holding Company Ltd.—basic and diluted	$	(1.19	)	$	(2.16	)	$	(4.47	)	$	(3.05	)

The Company’s potential dilutive securities, which include stock options and warrants to purchase common shares, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common shareholders of Biohaven Pharmaceutical Holding Company Ltd. is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common shareholders for the periods indicated because including them would have had an anti-dilutive effect:

	Three and Nine Months
	Ended September 30,
	2017	2016
Options to purchase common shares	5,028,037	3,247,500
Warrants to purchase common shares	821,751	600,000

	5,849,788	3,847,500

In addition to the potentially dilutive securities noted above, as of September 30, 2016, the Company agreed to issue warrants to purchase common shares to each of the Guarantor and Co-Guarantor of the Credit Agreement (see Note 7). As of September 30, 2016, the Series A Preferred Financing had not been completed and the warrants had not yet been issued. Accordingly, the Company has excluded these warrants from the table above and the calculation of diluted net loss per share for the three and nine months ended September 30, 2016. On January 26, 2017, the Company issued the warrants to the Guarantor and Co-Guarantor, pursuant to which each director received a warrant to purchase 107,500 common shares at an exercise price of $9.2911 per share. These warrants are included in the table above for the three and nine months ended September 30, 2017.

The Company had also agreed under the BMS Agreement to issue common shares to BMS upon the achievement of specified milestones or upon the occurrence of specified events (see Notes 5 and 12). Because the necessary conditions for issuance of the shares had not been met as of September 30, 2016, the Company excluded these shares from the table above and from the calculation of diluted net loss per share for the three and nine months ended September 30, 2016. In May 2017, in connection with the completion of its IPO, the Company issued 1,345,374 common shares to BMS in full satisfaction of its obligation to contingently issue equity securities pursuant to the license agreement. Accordingly, the table above does not include any shares related to the agreement with BMS for the three and nine months ended September 30, 2017.