7. Stockholders' Equity

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Stockholders' Equity

Preferred Stock

During the three months ended March 31, 2015, the former Medytox Series B preferred shareholders earned dividends totaling $523,050. At March 31, 2016 and December 31, 2015, accrued dividends of $1,684,148 and $2,099,148, respectively, were included in accrued expenses. All outstanding Medytox Series B preferred shares were cancelled in connection with the Merger in exchange for shares of Rennova Series B Convertible Preferred Stock, which only receives dividends when dividends are declared on our common stock.

During the three months ended March 31, 2016, Series C preferred shareholders converted a total of 182 shares of Series C preferred stock into 117,420 shares of Common Stock.

Common Stock

During the three months ended March 31, 2016, the Company issued an aggregate of 13,300 shares of the Company’s common stock to a consultant for services. The Company recognized $9,310 in compensation costs associated with these issuances.

Stock Options

During the three months ended March 31, 2016 and 2015, no stock options were granted or forfeited.

Basic and Diluted Income per Share

The following table presents the reconciliation of the numerators and denominators used in the calculation of earnings per share for the three months ended March 31, 2016 and 2015. For the three months ended March 31, 2015, all share and per share amounts have been restated as a result of the Merger.

	Three Months Ended March 31,
	2016			2015
Basic:
Numerator - net income (loss) available to common stockholders	$	(4,244,011	)		483,959
Denominator - weighted-average shares outstanding		14,816,586			11,937,530
Net income (loss) per share - Basic	$	(0.29	)	$	0.04
Diluted:
Numerator:
Net income (loss) available to common stockholders	$	(4,244,011	)	$	483,959
Interest expense on convertible debt, net of taxes		–			46,912
		(4,244,011	)		530,871
Denominator:
Weighted-average shares outstanding		14,816,586			11,937,530
Weighted-average equivalent shares options and warrants		–			354,901
Weighted-average equivalent shares from convertible debt		–			409,638
Weighted-average equivalent shares from Series C convertible preferred stock		–			–
Weighted-average equivalent shares from Series D convertible preferred stock		–			73,643
Weighted-average equivalent shares from Series E convertible preferred stock		–			33,623
		14,816,586			12,809,335
Net income (loss) per share - Diluted	$	(0.29	)	$	0.04

Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As of March 31, 2016 and 2015, the following potential common stock equivalents were excluded from the calculation of Diluted EPS as their effect was anti-dilutive:

	March 31,		March 31,
	2016		2015
Stock options outstanding		1,822,675		9,923,474
Warrants outstanding		6,898,560		–
Convertible debt		8,791,343		–
Convertible preferred stock		11,422,977		–
		28,935,555		9,923,474