Net Loss Per Share

6 Months Ended

Jun. 30, 2023

Note 9 - Net Loss Per Share

On January 3, 2023, the Company effected a 1-for-15 reverse stock split for its Common Stock. All Common Stock share information in the following net loss per share discussion and tables are shown as adjusted for this stock split retrospectively for all periods represented herein.

Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares of common stock outstanding does not include any potentially dilutive securities or unvested restricted stock. Unvested restricted stock, although classified as issued and outstanding at June 30, 2023 and 2022, is considered contingently returnable until the restrictions lapse and will not be included in the basic net loss per share calculation until the shares are vested. Unvested restricted stock does not contain non-forfeitable rights to dividends and dividend equivalents. Unvested RSUs are not included in calculations of basic net loss per share, as they are not considered issued and outstanding at time of grant.

Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options, preferred stock, RSUs, and unvested restricted stock, to the extent they are dilutive. For the three and six months ended June 30, 2023 and 2022, all such common stock equivalents have been excluded from diluted net loss per share as the effect to net loss per share would be anti-dilutive (due to the net loss).

The following table sets forth the computation of the Company’s basic and diluted net loss per share (in thousands, except per share data):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net loss	$	(1,049)	$	(9,033)	$	(2,268)	$	(13,572)
Less: deemed dividend	(149)		—		(149)		—

Less: Induced conversion on warrants	(751)		—		(751)		—
Less: warrant modification	$	—	$	—	$	(25)	$	—
Net loss attributable to common stockholders	$	(1,949)	$	(9,033)	$	(3,193)	$	(13,572)
Denominator:
Weighted-average number of shares of common stock for basic and diluted net loss per share	2,487		2,065		2,277		2,065
Basic and diluted net loss per share	$	(0.78)	$	(4.37)	$	(1.40)	$	(6.57)

The following table represents the potential shares that were excluded from the computation of weighted-average number of shares of common stock in computing the diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect (due to the net loss):


	As of June 30,
	2023	2022
Unvested restricted stock awards	—	42

Outstanding stock options	10,000	16,835
Common stock issuable upon conversion of Series F Preferred Stock	3,733,098	—
Common stock issuable upon conversion of Series F Preferred Warrants	19,152,047	—
Common stock issuable upon conversion of Common Stock warrants	4,137,846	343,101