14. Net Loss per Common Share

 

The Company calculates loss per share using the two-class method, which is an earnings allocation formula that determines earnings per share for Common Stock and participating securities, if any, according to dividends declared and non-forfeitable participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to Common Stock and participating securities, if any, based on their respective rights to receive dividends. Holders of restricted Common Stock were entitled to all cash dividends, when and if declared, and such dividends are non-forfeitable. The participating securities do not have a contractual obligation to share in any losses of the Company. As a result, net losses are not allocated to the participating securities for any periods presented.

 

Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of Common Stock outstanding during the period, without consideration for Common Stock equivalents. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of Common Stock and Common Stock equivalents outstanding for the period.

 

 

The Company’s potential dilutive securities which consist of unvested restricted stock, unvested restricted stock units, options, and warrants have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average Common Stock outstanding used to calculate both basic and diluted net loss per share is the same.

 

The following shares of potentially dilutive securities, weighted during the years ended December 31, 2017, 2016, and 2015 have been excluded from the computations of diluted weighted average shares outstanding as the effect of including such securities would be antidilutive:

		For the Years Ended December 31,
		2017			2016			2015
Warrants to purchase Common Stock			745,285			456,150			685,061
Opus warrants to purchase Common Stock			628,383			1,780,000			-
Options to purchase Common Stock			1,093,283			1,604,214			1,960,443
Series A Preferred Stock			2,740			-			-
Unvested Restricted Stock			9,840,614			8,749,052			6,816,321
Unvested Restricted Stock Units			1,390,799			1,087,563			427,627
Total			13,701,104			13,676,979			9,889,452