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, 2019 and December 31, 2018, 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, 2019 and December 31, 2018 excludes: 1) options to purchase 4,418,250 and 3,460,750 shares, respectively, of common stock, 2) warrants to purchase 8,633,188 and 7,353,056 shares, respectively, of common stock, 3) Series B Preferred Stock which is convertible into 3,826,055 and 3,604,827 shares, respectively, of common stock, 4) Series B1 Preferred Stock which is convertible into 9,028,085 and 10,057,597 shares, respectively, of common stock, and 5) Series A Preferred Stock which is convertible into 419,859 shares of common stock.

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



	2019			2018
Basic loss per Share
Numerator:
Net loss available to common shareholders	$	(11,445,628	)	$	(8,037,304	)
Denominator:
Weighted-average common shares outstanding	40,988,946			35,411,264
Basic loss per share	$	(0.28	)	$	(0.23	)

Diluted Earnings per Share
Numerator:
Net loss available to common shareholders	$	(11,445,628	)	$	(8,037,304	)
Denominator:
Weighted-average shares outstanding	40,988,946			35,411,264
Effect of dilutive securities
Stock options and warrants	—			—
Preferred stock	—			—
Diluted weighted-average shares outstanding	40,988,946			35,411,264
Diluted loss per share	$	(0.28	)	$	(0.23	)