Note 10 – Stockholders’ Deficit and Loss Per Share

The following table presents the calculation of loss per share for the three and six months ended June 30, 2019 and 2018:

	Three months ended June 30				Six months ended June 30
In thousands, except per share data	2019		2018		2019		2018
Numerator:
Net loss, as reported	$	(365)	$	(1,028)	$	(888)	$	(968)
Change in dividends accumulated on preferred shares		(3)		(50)		(38)		(99)
Net loss attributable to common shares	$	(368)	$	(1,078)		(926)	$	(1,067)
Denominator:
Weighted average shares outstanding		13,226		2,243		9,123		2,203
Basic and diluted loss per share	$	(0.03)	$	(0.48)	$	(0.10)	$	(0.48)

Basic loss per common share is computed by dividing net loss attributable to common shares by the weighted average number of common shares outstanding for the period. Diluted loss per common share is computed by dividing net loss attributable to common shares, by the weighted average number of common shares outstanding, adjusted for shares that would be assumed outstanding after warrants and stock options vested under the treasury stock method.

At June 30, 2019 and 2018, the Company had accumulated unpaid dividends of $5,000 and $41,000, respectively, related to the Series B Convertible Preferred Stock (“SBCPS”).

For each holder of SBCPS that converted their shares into Common Stock in March 2019, the Company declared a dividend of $4.60 per share of SBCPS on March 29, 2019, aggregating $73,000, which was distributed to these former holders of the SBCPS on April 2, 2019.

As of June 30, 2019, the Company had warrants to purchase 250,000 shares of Common Stock outstanding, which were included in the calculation of diluted loss per share because their exercise price was less than the average share price of our Common Stock for the period, so their inclusion was dilutive. As of June 30, 2019 and 2018, the Company had other warrants to purchase 10,000 and 52,000 shares, respectively, of Common Stock outstanding, which were excluded from the calculation of diluted loss per share because their exercise price was greater than the average share price for the period and their inclusion would have been anti-dilutive. The remaining warrants to purchase 10,000 shares as of June 30, 2019 could be dilutive in the future if the average share price increases and is greater than the exercise price of these warrants.

As of June 30, 2019 and 2018, the Company had 648 and 16,512 shares, respectively, of SBCPS outstanding, which were convertible into 64,800 and 330,240 shares of Common Stock, none of which were used in the calculation of diluted loss per share because their conversion price was greater than the average share price for the period and their inclusion would have been anti-dilutive. These shares of SBCPS could be dilutive in the future if the average share price of our Common Stock increases and is greater than the purchase price of these shares of SBCPS.

On February 5, 2019, the Company commenced a Rights Offering to current shareholders under which the shareholders could purchase shares of our Common Stock at an exercise price of $1.00 per share. On April 5, 2019, the Company completed its Rights Offering and accepted subscriptions for a total of 2,500,000 shares of its Common Stock, representing approximately all of the shares offered, for aggregate gross proceeds to the Company of $2.5 million, less issuance costs of $72,000.