Net Loss Per Common Share

9 Months Ended

Sep. 30, 2016

Net Loss Per Common Share

Net Loss Per Common Share

7.Net Loss Per Common Share

Basic net loss per common share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed using the sum of the weighted average number of common shares outstanding during the period and, if dilutive, the weighted average number of potential shares of common stock, including the assumed exercise of stock options, stock warrants, unvested restricted common stock and unvested restricted stock units.

The Company applies the two-class method to calculate its basic and diluted net loss per share attributable to common stockholders, as its preferred stock and common stock are participating securities. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. However, the two-class method does not impact the net loss per share of common stock as the Company was in a net loss position for each of the periods presented and preferred stockholders do not participate in losses. For the three and nine months ended September 30, 2016 and 2015, the following potentially dilutive securities have been excluded from the computations of diluted weighted-average shares outstanding because the effect would be anti-dilutive:

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2016	2015	2016	2015
Stock options	2,567,017	1,583,521	2,567,017	1,583,521
Stock warrants	310,220	326,553	310,220	326,553
Unvested restricted stock units	57,500	—	57,500	—
Unvested restricted common stock	—	1,750,794	—	1,750,794
	2,934,737	3,660,868	2,934,737	3,660,868

Amounts in the table above reflect the common stock equivalents of the noted instruments.

The following table summarizes the calculation of the basic and diluted net loss per common share:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Numerator:
Net loss and comprehensive loss	$	(21,081,808	)	$	(9,940,658	)	$	(57,636,873	)	$	(25,313,037	)
Denominator:
Weighted-average basic and diluted common shares	24,166,113			7,504,148			20,958,421			7,042,977
Basic and diluted net loss per common share	$	(0.87	)	$	(1.32	)	$	(2.75	)	$	(3.59	)