Net Loss Per Share

6 Months Ended

Jun. 30, 2020

The Company calculates earnings per share (“EPS”) in accordance with the provisions of ASC 260-10. Under the guidance, basic EPS excludes dilution for common stock equivalents and is computed by dividing net income or loss attributable to common shareholders by the weighted average number of common shares outstanding for the period. All options, warrants or other potentially dilutive instruments issued for nominal consideration are required to be included in the calculation of basic and diluted net income attributable to common stockholders. Diluted EPS is calculated using the treasury stock method and reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock.

Diluted net loss per common share for the three and six months ended June 30, 2020 does not include the effect of 8,831,790 outstanding common stock awards, as the effect of their inclusion is anti-dilutive. Diluted net loss per common share for the three and six months ended June 30, 2019 does not include the effect of 9,286,508 outstanding common stock awards, as the effect of their inclusion is anti-dilutive.

A reconciliation of shares used in calculating basic and diluted net loss per share follows:



	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2020	2019	2020	2019
Basic	65,650,782	62,350,787	65,023,302	61,899,072
Effect of assumed exercised options	—	—	—	—
Diluted	65,650,782	62,350,787	65,023,302	61,899,072

The Company expects to settle the principal amount of its outstanding Notes (as defined below) in cash and any excess in shares of the Company’s common stock. The Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share of common stock when the average market price of the Company’s common stock for a given

period exceeds the initial conversion price of $38.58 per share for the Notes. See Note 8 of the Notes to condensed consolidated financial statements for a full description of the Notes.