EARNINGS PER SHARE

Basic earnings per share includes no dilution and is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares outstanding for the periods presented. The calculation of basic earnings per share for the years ended December 31, 2018 and December 31, 2017, respectively, includes the weighted average of common shares outstanding. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity, such as convertible preferred stock, stock options, warrants or convertible securities. Due to their anti-dilutive effect, the calculation of diluted earnings per share for the years ended December 31, 2018 and December 31, 2017 excludes: 1) options to purchase 3,460,750 and 3,180,417 shares, respectively, of common stock, 2) warrants to purchase 7,353,056 and 7,353,056 shares, respectively, of common stock, 3) Series B Preferred Stock which is convertible into 3,604,827 and 3,427,597 shares, respectively, of common stock, 4) Series B1 Preferred Stock which is convertible into 10,057,597 and 13,151,989 shares, respectively, of common stock, 5) Series A Preferred Stock which is convertible into 419,859 and 453,567 shares, respectively, of common stock, and 6) zero and 31,568 shares, respectively, of Series C Preferred Stock, which is convertible into zero and 3,156,800 shares of common stock, respectively.

The following is a reconciliation of the numerator and denominator for basic and diluted earnings per share for the years ended December 31, 2018 and 2017:



	2018			2017
Basic loss per Share
Numerator:
Net loss available to common shareholders	$	(8,037,304	)	$	(11,824,602	)
Denominator:
Weighted-average common shares outstanding	35,411,264			32,653,402
Basic loss per share	$	(0.23	)	$	(0.36	)

Diluted Earnings per Share
Numerator:
Net loss available to common shareholders	$	(8,037,304	)	$	(11,824,602	)
Denominator:
Weighted-average shares outstanding	35,411,264			32,653,402
Effect of dilutive securities
Stock options and warrants	—			—
Preferred stock	—			—
Diluted weighted-average shares outstanding	35,411,264			32,653,402
Diluted loss per share	$	(0.23	)	$	(0.36	)