Net Loss per Common Share

6 Months Ended

Jun. 30, 2020

Net Loss per Common Share

Net Loss per Common Share

Note 12. Net Loss per Common Share

The Company uses the two-class method to compute net income (loss) per common share during periods the Company realizes net income and has securities outstanding (redeemable convertible preferred stock) that entitle the holder to participate in dividends and earnings of the Company. In addition, the Company analyzes the potential dilutive effect of outstanding redeemable convertible preferred stock under the "if-converted" method when calculating diluted earnings per share and reports the more dilutive of the approaches (two class or "if-converted"). The two-class method is not applicable during periods with a net loss, as the holders of the redeemable convertible preferred stock have no obligation to fund losses. For all periods presented, the two-class method was not applicable.

The Company also analyzes the potential dilutive effect of stock options, restricted stock units, warrants and shares underlying future tranche rights under the treasury stock method (as applicable), during periods of income, or during periods in which income is recognized related to changes in fair value of its liability-classified securities.

Details in the computation of basic and diluted net loss per common share were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
($ in thousands except per share data)		2020		2019		2020		2019
Net loss per share — Basic:
Net loss	$	(24,226)	$	(11,176)	$	(15,409)	$	(22,150)
Denominator for basic net loss per share		33,583		28,461		31,941		28,070
Basic net loss per common share	$	(0.72)	$	(0.39)	$	(0.48)	$	(0.79)
Net loss per share — Diluted:
Net loss	$	(24,226)	$	(11,176)	$	(15,409)	$	(22,150)
Less: Future tranche right revaluation gain applicable to dilutive liability-classified future tranche rights		—		—		(2,284)		—
Numerator for diluted net loss per share	$	(24,226)	$	(11,176)	$	(17,693)	$	(22,150)
Denominator for basic net loss per share		33,583		28,461		31,941		28,070
Plus: Incremental shares underlying “in the money” liability-classified future tranche rights outstanding		—		—		2,182		—
Denominator for diluted net loss per share		33,583		28,461		34,123		28,070
Diluted net loss per common share	$	(0.72)	$	(0.39)	$	(0.52)	$	(0.79)

Potentially dilutive securities, whose effect would have been antidilutive, were excluded from the computation of diluted earnings per share for each of the three and six months ended June 30, 2020 and 2019. Total antidilutive securities excluded from the calculation of diluted net loss per share for the respected periods were as follows:

	Three Months Ended			Six Months Ended
	June 30,			June 30,
(in thousands)		2020	2019		2020	2019
Stock options		4,756	3,844		4,756	3,844
Restricted stock units		376	194		376	194
Common stock warrants		8,138	2,769		8,138	2,769
Convertible preferred stock		2,369	—		2,369	—
Future tranche rights		53,528	—		33,791	—
Total		69,167	6,807		49,430	6,807