Net Loss per Common Share Applicable to Common Stockholders

12 Months Ended

Dec. 31, 2020

Net Loss per Common Share Applicable to Common Stockholders

Net Loss per Common Share Applicable to Common Stockholders

Note 17.  Net Loss per Common Share Applicable to Common Stockholders

Net loss applicable to common stockholders represents net loss adjusted for deemed dividends related to the December 2019 Private Placement, as more fully described in Note 7.

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 (e.g. 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 outstanding stock options, unvested 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.

For the years ended December 31, 2020, 2019 and 2018, diluted net loss per common share applicable to common stockholders was the same as basic net loss per common share applicable to common stockholders as the effects of the Company’s potential common stock equivalents are antidilutive. Potentially dilutive securities, whose effect would have been antidilutive, were excluded from the computation of diluted earnings per share for each of the years ended December 31, 2020, 2019 and 2018.

Total antidilutive securities excluded from the calculation of diluted net loss per share for the years ended December 31, 2020, 2019 and 2018, were as follows:

(in thousands)	2020	2019	2018
Stock options	4,614	4,220	3,305
Restricted stock units	903	194	—
Common stock warrants	16,968	5,099	2,769
Convertible preferred stock	2,369	2,369	1
Future tranche rights	50,467	49,407	—
Total	75,321	61,289	6,075