Net Loss per Share

9 Months Ended

Sep. 30, 2020

Note 13. Net Loss per Share

The following is a reconciliation of the numerator (net loss) and the denominator (number of shares) used in the basic and diluted net loss per share calculations:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Net loss	$	(4,763	)	$	(5,818	)	$	(12,946	)	$	(12,189	)
Less: Cumulative dividends in excess of interest expense on Series A Preferred Stock		—			—			—			—
Net loss attributable to common stockholders	$	(4,763	)	$	(5,818	)	$	(12,946	)	$	(12,189	)
Weighted average number of shares of common stock		7,464,949			1,070,000			3,201,650			1,070,000
Basic and diluted net loss per share	$	(0.64	)	$	(5.44	)	$	(4.04	)	$	(11.39	)

The Company applied the two-class method for calculating net loss per share. The two-class method is an allocation of losses between the holders of common stock and the Company’s participating securities. Net loss attributable to common stockholders is computed by deducting the dividends accumulated for the period on the Series A Preferred Stock from the Company’s net loss. Interest expense on the Series A Preferred Stock is calculated using the effective interest method. The adjustment, if any, to the net loss is the portion of the cumulative dividends in excess of the interest expense on the Series A Preferred Stock. There were no cumulative dividends in excess of interest expense during the three and nine months ended September 30, 2020 and 2019.

The Company’s basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period.

As the Company has reported a net loss for all periods presented, basic and diluted net loss per share attributable to common stockholders are the same for those periods. For the three months and nine months ended September 30, 2020, the Company excluded 1,847,298 shares underlying restricted stock awards, from its net loss per diluted share calculations because their effect was anti-dilutive. Under the 2020 Plan, there were zero outstanding restricted stock awards in 2019.