EARNINGS PER SHARE

Basic earnings per share includes no dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the periods presented. Diluted earnings per share reflects 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 three months ended March 31, 2019 and 2018 excludes: 1) options to purchase 3,460,750 and 2,962,933 shares, respectively, of common stock, 2) warrants to purchase 7,353,056 and 7,353,061 shares, respectively, of common stock, 3) Series B Preferred Stock which is convertible into 3,658,905 and 3,479,016 shares, respectively, of common stock, 4) Series B1 Preferred Stock which is convertible into 10,112,309 and 12,947,916 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) Series C Preferred Stock, which was convertible into 3,156,800 shares of common stock as of March 31, 2018.

The following is a reconciliation of the numerator and denominator for basic and diluted earnings per share for the three months ended March 31, 2019 and 2018:



	Three Months Ended March 31,
	2019			2018

Basic Earnings per Share
Numerator:
Net loss available to common shareholders	$	(5,931,034	)	$	(3,455,829	)
Denominator:
Weighted-average shares outstanding	40,195,925			33,063,732
Basic earnings per share	$	(0.15	)	$	(0.10	)

Diluted Earnings per Share
Numerator:
Net loss available to common shareholders	$	(5,931,034	)	$	(3,455,829	)
Denominator:
Weighted-average shares outstanding	40,195,925			33,063,732
Effect of dilutive securities
Stock options and warrants	—			—
Preferred Stock A	—			—
Diluted weighted-average shares outstanding	40,195,925			33,063,732
Diluted earnings (loss) per share	$	(0.15	)	$	(0.10	)