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Net Income (Loss) Per Common and Preferred Share
6 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Net income (loss) per common and preferred share

4.

Net income (loss) per common and preferred share:

Basic net income (loss) per common share is calculated using the two-class method required for participating securities which includes the convertible preferred shares as a separate class. The preferred shares entitle the holders to participate in dividends and in earnings and losses of the Company on an equivalent basis as common shares. Accordingly, undistributed earnings (losses) are allocated to common shares and participating preferred shares based on the weighted-average shares of each class outstanding during the period.

The treasury stock method is used to compute the dilutive effect of the Company’s stock options and warrants. Under this method, the incremental number of common shares used in computing diluted net income (loss) per common share is the difference between the number of common shares assumed issued and purchased using assumed proceeds.

The if-converted method is used to compute the dilutive effect of the Company’s convertible preferred shares. Under the if-converted method, dividends on the preferred shares, if applicable, are added back to earnings attributable to common shareholders, and the preferred shares and paid-in kind dividends are assumed to have been converted at the share price applicable at the end of the period. The if-converted method is applied only if the effect is dilutive.

For the three months ended June 30, 2019, 2,658,217 stock options and all warrants and convertible preferred shares were excluded from the calculation of diluted net loss per common share as their inclusion would be anti-dilutive. For the six months ended June 30, 2019, all stock options, warrants and convertible preferred shares were anti-dilutive and were excluded from the diluted weighted average common shares outstanding for the period.

For the three and six months ended June 30, 2018, all stock options, warrants and convertible preferred shares were anti-dilutive and were excluded from the diluted weighted average common shares outstanding for the period.

The following table sets out the computation of basic and diluted net loss per common and preferred share:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Numerator:

 

Common Shares

 

 

Preferred Shares

 

 

Common Shares

 

 

Preferred Shares

 

 

Common Shares

 

 

Preferred Shares

 

 

Common Shares

 

 

Preferred Shares

 

Allocation of loss attributed to

   shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(9,627

)

 

$

(380

)

 

$

(6,498

)

 

$

(1,303

)

 

$

(20,538

)

 

$

(810

)

 

$

(10,560

)

 

$

(996

)

Adjustment for change in fair

   value of liability classified

   stock options

 

 

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(9,632

)

 

$

(380

)

 

$

(6,498

)

 

$

(1,303

)

 

$

(20,538

)

 

$

(810

)

 

$

(10,560

)

 

$

(996

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

25,773,879

 

 

 

1,016,000

 

 

 

14,306,491

 

 

 

2,868,000

 

 

 

25,763,858

 

 

 

1,016,000

 

 

 

16,055,456

 

 

 

1,513,667

 

Adjustment for dilutive effect of

   stock options

 

 

1,680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

25,775,559

 

 

 

1,016,000

 

 

 

14,306,491

 

 

 

2,868,000

 

 

 

25,763,858

 

 

 

1,016,000

 

 

 

16,055,456

 

 

 

1,513,667

 

Net loss attributable to shareholders per

   share - basic

 

$

(0.37

)

 

$

(0.37

)

 

$

(0.45

)

 

$

(0.45

)

 

$

(0.80

)

 

$

(0.80

)

 

$

(0.66

)

 

$

(0.66

)

Net loss attributable to shareholders per

   share - diluted

 

$

(0.37

)

 

$

(0.37

)

 

$

(0.45

)

 

$

(0.45

)

 

$

(0.80

)

 

$

(0.80

)

 

$

(0.66

)

 

$

(0.66

)