Net Loss per Common Share

9 Months Ended

Sep. 30, 2017

Net Loss per Common Share [Abstract]

Net Loss per Common Share

5. Net Loss per Common Share

The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Basic and diluted net loss per common share calculation:
Net loss	$	(779,000)	$	(2,375,000)	$	(10,486,000)	$	(9,338,000)
Excess of fair value of consideration transferred on conversion of Series B redeemable convertible preferred stock		-		(1,214,000)		-		(3,580,000)
Accretion of Series B redeemable convertible preferred stock		-		-		-		(1,858,000)
Net loss attributable to common stockholders - basic	$	(779,000)	$	(3,589,000)	$	(10,486,000)	$	(14,776,000)
Changes in fair value of June 2016 warrants		-		-		-		(549,000)
Changes in fair value of November 2016 warrants		-		-		(1,546,000)		-
Net loss attributable to common stockholders - diluted	$	(779,000)	$	(3,589,000)	$	(12,032,000)	$	(15,325,000)
Weighted average common shares outstanding - basic		8,874,813		1,112,039		5,326,139		859,077
Net loss per share of common stock - basic	$	(0.09)	$	(3.23)	$	(1.97)	$	(17.20)
Weighted average common shares outstanding - diluted		8,874,813		1,112,039		5,518,847		864,891
Net loss per share of common stock -  diluted	$	(0.09)	$	(3.23)	$	(2.18)	$	(17.72)

The $1,546,000 change in fair value of November 2016 warrants for the nine months ended September 30, 2017 represented a net gain from reduction in the fair value of the warrants starting in April 2017 when the warrants became in the money from an exercise price downward adjustment made in connection with the Company’s 1-for-10 reverse stock split through September 30, 2017.  In September 2017, the exercise price was further adjusted down to $0.57 per share in connection with the issuance of 523,210 shares of common stock to shareholders who were parties to the CSIA (See Note 4).  The dilutive effect of the November warrants on net loss per share of common stock (diluted) reflects these exercise price adjustments.

The following outstanding securities at September 30, 2017 and 2016 have been excluded from the computation of diluted weighted average shares outstanding for the three and nine months ended September 30, 2017 and 2016, as they would have been anti-dilutive:

	Three Months Ended			Nine Months Ended
	September 30,				September 30,
	2017		2016		2017	2016
Options		1,116,765	73,694		1,116,765	73,694
Warrants		8,712,220	244,348		8,232,056	137,965
Common stock (Note 6)		523,210	-		523,210	-
Total		10,352,195	318,042		9,872,031	211,659