Net loss per common share

6 Months Ended

Jun. 30, 2016

10. Net loss per common share

Basic net loss per share excludes dilution for potentially dilutive securities and is computed by dividing net loss by the weighted average number of common shares outstanding during the period excluding the 9,000,000 shares loaned to Bank of America under a share lending arrangement for periods prior to the third quarter of 2015. In the third quarter of 2015, the 9,000,000 shares loaned to Bank of America were returned and therefore do not impact the three or six months ended June 30, 2016. Prior to the return of those shares, the borrowed shares were not considered outstanding for the purpose of computing and reporting basic or diluted loss per share because the share borrower had to return all borrowed shares to the Company (or, in certain circumstances, the cash value thereof).

Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Potentially dilutive securities are excluded from the computation of diluted net loss per share for all of the periods presented in the accompanying condensed consolidated statements of operations because the reported net loss in each of these periods results in their inclusion being antidilutive. Antidilutive securities, which consist of stock options, restricted stock units, warrants, and shares that could be issued upon conversion of the senior convertible notes, are not included in the diluted net loss per share calculation and excluded the 9,000,000 shares of the Company’s common stock loaned under the share lending arrangement.

On February 8, 2016, all unexercised warrants related to the February 2012 public offering expired. In November 2015, the Company issued warrants to purchase 159,304 shares of the Company’s common stock to the placement agent in exchange for services related to the Company’s offering to select investment funds in Israel.

In May 2016, the Company issued Series A warrants (“A Warrants”) to purchase 36,407,765 shares of the Company’s common stock and Series B warrants (“B Warrants) to purchase 12,135,921 shares of the Company’s common stock to certain institutional investors. These warrants remain outstanding at June 30, 2016 (see Note 14 – Warrants).

Potentially dilutive securities outstanding are summarized as follows (in shares):


	June 30,
	2016		2015
Exercise of common stock options		28,219,831		19,985,768
Vesting of restricted stock units		4,553,757		2,198,173
Exercise of common stock warrants		48,702,990		4,090,013
Conversion of senior convertible notes into common stock		4,072,809		14,708,590

		85,549,387		40,982,544