NET LOSS PER COMMON SHARE

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Numerator for basic and diluted loss per share:
Net loss	$	(3,482	)	$	(2,390	)	$	(9,351	)	$	(7,668	)
Preferred dividends		(949	)		(553	)		(2,347	)		(1,575	)
Preferred stock exchange		—			(1,245	)		—			(1,245	)
Net loss available to common shareholders	$	(4,431	)	$	(4,188	)	$	(11,788	)	$	(10,488	)
Denominator for basic and dilutive loss per share – weighted-average shares outstanding		95,838,813			93,197,689			95,116,862			92,538,582
Net loss	$	(0.04	)	$	(0.03	)	$	(0.10	)	$	(0.08	)
Preferred dividends		(0.01	)		(0.00	)		(0.02	)		(0.02	)
Preferred stock exchange		—			(0.01	)		—			(0.01	)
Basic and diluted loss per share available to common shareholders	$	(0.05	)	$	(0.04	)	$	(0.12	)	$	(0.11	)

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 Nine Months Ended September 30,
	2018		2017
Related party lines of credit		—		5,118,066
Convertible redeemable preferred stock		42,627,000		27,021,784
Stock options		7,318,179		6,116,318
Warrants		1,763,856		150,000
Total potential dilutive securities		51,709,035		38,406,168