Note O - Net Loss Per Share

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

O. Net Loss Per Share

Under the 

two

-class method, for periods with net income, basic net income per share of common stock is computed by dividing the net income attributable to shares of common stock by the weighted average number of shares of common stock outstanding during the period. Net income attributable to shares of common stock is computed by subtracting from net income the portion of current period earnings that participating securities would have been entitled to receive pursuant to their dividend rights had all of the period’s earnings been distributed. 

No

 such adjustment to earnings is made during periods with a net loss as the holders of the participating securities have 

no

 obligation to fund losses. Diluted net income (loss) per share of common stock is computed under the 

two

-class method by using the weighted average number of shares of common stock outstanding plus the potential dilutive effects of stock options and warrants. In addition, the Company analyzes the potential dilutive effect of the outstanding convertible securities under the if-converted method when calculating diluted income (loss) per share of common stock in which it is assumed that the outstanding convertible securities convert into common stock at the beginning of the period or date of issuance, if the convertible security was issued during the period. The Company reports the more dilutive of the approaches (

two

-class or if-converted) as its diluted net income (loss) per share of common stock during the period.

The following table summarizes the computation of basic and diluted net loss and net loss per share of common stock of the Company (in thousands, except share and pe

r share amounts):

	Year Ended December 31,
	2019			2018
Net loss - basic and diluted	$	(24,522	)	$	(56,466	)
Weighted average number of shares of common stock - basic and diluted		29,654,968			17,930,023
Net loss per share - basic and diluted	$	(0.83	)	$	(3.15	)

Diluted net loss per share of common stock is the same as basic net loss per share of common stock for all periods presented because the effects of potentially dilutive items were anti-dilutive given the Company

’s net loss. The following securities, presented on a common stock equivalent basis, have been excluded from the calculation of weighted average number of shares of common stock outstanding because their effect is anti-dilutive:

	December 31,
	2019		2018
Deerfield Convertible Note		1,213,606		1,167,607
2021 Notes		175,336		4,481,182
2019 Notes*		29,625,785		-
Awards under equity incentive plans		5,192,222		3,704,755
Common stock warrants		2,423,077		2,527,763
Series A Convertible Preferred Stock		-		1,112,334
Total securities excluded from the calculation of weighted average number of shares of common stock outstanding		38,630,026		12,993,641

* Inclusive of

26,439,015

of shares of Common Stock issuable (i) in exchange of the Deerfield Optional Conversion Feature, or (ii) upon conversion of the Series B-

2

Preferred Stock issuable in exchange of the Deerfield Optional Conversion Feature.