Basic and Diluted Net Loss per Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Basic and Diluted Net Loss per Share

Basic and Diluted Net Loss per Share

Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed giving effect to all dilutive

potential common shares that were outstanding during the period. Diluted potential common shares consist of incremental shares issuable upon exercise of stock options, warrants and restricted stock units.

For the three and nine month periods ended September 30, 2019, the effect of outstanding warrants is reflected in diluted net loss per common share by applying the treasury stock method resulting in 1.5 million and 2.5 million incremental shares that were included in the weighted average number of common shares used in the diluted net loss per common share calculation for the three months and nine months ended September 30, 2019, respectively. Additionally, the gain on the fair value of warrant liabilities of $0.6 million and $3.0 million for the three and nine month periods ended September 30, 2019, respectively, increased the net loss attributable to common stockholders in calculating diluted net loss per common share.

No adjustments have been made to the weighted average outstanding common shares figures for the three and nine months periods ended September 30, 2018.

As of September 30, 2019, there were 25,547,652 outstanding options, 1,400,352 outstanding warrants, and 6,109,752 unvested restricted stock units that were excluded from the calculation of diluted net loss per common share as the effect of including these instruments would have been anti-dilutive.