NET LOSS PER COMMON SHARE

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

NET LOSS PER COMMON SHARE

Basic loss per common share is calculated by dividing net loss available to common shareholders for the period by the weighted-average number of common shares outstanding during the period. Diluted loss per common share is calculated by dividing net loss available to common shareholders for the period by the weighted-average number of common shares outstanding during the period, adjusted to include, if dilutive, potential dilutive shares consisting of convertible preferred stock, convertible related party lines of credit, stock options and warrants, calculated using the treasury stock and if-converted methods. For diluted loss per share calculation purposes, the net loss available to common shareholders is adjusted to add back any preferred stock dividends and any interest on convertible debt reflected in the condensed consolidated statement of operations for the respective periods.

The table below presents the computation of basic and diluted loss per share: 

(Amounts in thousands except share and per share amounts)	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Numerator for basic and diluted loss per share:
Net loss	$	(2,284	)	$	(2,547	)	$	(5,869	)	$	(5,276	)
Preferred dividends		(720	)		(514	)		(1,489	)		(1,021	)
Net loss available to common shareholders	$	(3,004	)	$	(3,061	)	$	(7,358	)	$	(6,297	)
Denominator for basic and dilutive loss per share – weighted-average shares outstanding		95,161,570			92,539,230			94,749,904			92,203,567
Net loss	$	(0.02	)	$	(0.03	)	$	(0.06	)	$	(0.06	)
Preferred dividends		(0.01	)		(0.00	)		(0.02	)		(0.01	)
Basic and diluted loss per share available to common shareholders	$	(0.03	)	$	(0.03	)	$	(0.08	)	$	(0.07	)

The following potential dilutive securities have been excluded from the computations of diluted weighted-average shares outstanding, as their effect would have been antidilutive:  

Potential Dilutive securities	Three and Six Months Ended June 30,
	2018		2017
Related party lines of credit		5,432,579		5,016,236
Convertible redeemable preferred stock		26,629,507		11,709,151
Stock options		7,341,093		6,171,555
Warrants		270,000		175,000
Total potential dilutive securities		39,673,179		23,071,942