7. Net Loss per Share

Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding. Included in net loss is the deemed dividend from preferred shares issuance of $6.9 million for the three and nine months ended September 30, 2017. The deemed dividend relates to the discount provided to preferred stockholders upon conversion of their preferred stock to common shares and is subtracted from net loss (see Note 9). Diluted net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding including the effect of common share equivalents. Diluted net loss per share assumes the issuance of potential dilutive common shares outstanding for the period and adjusts for any changes in income and the repurchase of common shares that would have occurred from the assumed issuance, unless such effect is anti-dilutive. The number of options and warrants for the purchase of common stock that were excluded from the computations of net loss per common share for the three and nine months ended September 30, 2017 were 11,219,015 and 57,341,642, respectively, and for the three and nine months ended September 30, 2016 were 8,513,552 and 7,858,899, respectively.

The following tables set forth the computation of diluted net loss per weighted average number of shares outstanding attributable to Synthetic Biologics, Inc. and Subsidiaries for the three and nine months ended September 30, 2017 and 2016 (in thousands except share and per share amounts):

	Three months ended September 30, 2017						Nine months ended September 30, 2017
	Net loss		Shares		Per Share		Net Loss		Shares		Per Share
	(Numerator)		(Denominator)		Amount		(Numerator)		(Denominator)		Amount
Net loss - Basic	$	(17,823)		128,279,674	$	(0.14)	$	(24,925)		122,950,397	$	(0.20)

Dilutive shares related to warrants	$	-		-	$	-	$	-		-	$	-

Net loss - Dilutive	$	(17,823)		128,279,674	$	(0.14)	$	(24,925)		122,950,397	$	(0.20)

	Three months ended September 30, 2016						Nine months ended September 30, 2016
	Net loss		Shares		Per Share		Net Loss		Shares		Per Share
	(Numerator)		(Denominator)		Amount		(Numerator)		(Denominator)		Amount
Net loss - Basic	$	(8,353)		91,441,687	$	(0.09)	$	(24,880)		91,095,990	$	(0.27)

Dilutive shares related to warrants	$	-		-	$	-	$	-		-	$	-

Net loss - Dilutive	$	(8,353)		91,441,687	$	(0.09)	$	(24,880)		91,095,990	$	(0.27)