Net Loss per Common Share

6 Months Ended

Jun. 30, 2020

(11)	Net Loss per Common Share

Basic net loss per share is determined by dividing net loss by the weighted average shares of common stock outstanding during the period, without consideration of potentially dilutive securities, except for those shares that are issuable for little or no cash consideration. Diluted net loss per share is determined by dividing net loss by diluted weighted average shares outstanding. Diluted weighted average shares reflects the dilutive effect, if any, of potentially dilutive common shares, such as stock options and warrants calculated using the treasury stock method. In periods with reported net operating losses, all common stock options and warrants are generally deemed anti-dilutive such that basic net loss per share and diluted net loss per share are equal.

The following potentially dilutive securities were excluded from the computation of earnings per share as of June 30, 2020 and 2019 because their effects would be anti-dilutive:

	June 30,
(in thousands, except share data)	2020		2019
Stock options		1,640		1,667
Common stock warrants - equity		4,051,499		6,004
Common stock warrants - liabilities		—		179
Common stock reserved for conversion of preferred shares		2,595,087		—
Assumed conversion of convertible notes		146,288		480
Total		6,794,514		8,329

However, in certain periods in which the exercise price of the warrants was less than the last reported sales price of Delcath’s common stock on the final trading day of the period and there is a gain recorded pursuant to the change in fair value of the warrant derivative liability, the impact of gains related to the mark-to-market adjustment of the warrants outstanding at the end of the period is reversed and the treasury stock method is used to determine diluted earnings per share.

The following table reconciles net loss per share for the three and six months ended June 30, 2020 and 2019:

	Three months ended June 30,						Six months ended June 30,
(in thousands, except share data)	2020			2019			2020			2019
Net loss	$	(4,275	)	$	(5,959	)	$	(12,136	)	$	(13,853	)
Deemed dividend for triggering of warrant down round feature		(55	)		—			(55	)		—
Net loss attributable to common stockholders	$	(4,330	)	$	(5,959	)	$	(12,191	)	$	(13,853	)

Weighted average shares outstanding - basic*		2,273,187			101,862			1,171,994			102,956
Weighted average shares outstanding - diluted*		2,273,187			101,862			1,171,994			102,956

Net loss per share - basic*	$	(1.90	)	$	(58.50	)	$	(10.40	)	$	(134.55	)
Net loss per share - diluted*	$	(1.90	)	$	(58.50	)	$	(10.40	)	$	(134.55	)


* reflects, one-for-seven hundred (1:700) reverse stock split effected on December 24, 2019.

At June 30, 2020, the Company had 371,000 pre-funded warrants outstanding. The following table provides a reconciliation of the weighted average shares outstanding calculation for the three and six months ended June 30, 2020 and 2019:

	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Weighted average shares issued		2,038,297		25,587		1,054,549		26,681
Weighted average pre-funded warrants		234,890		76,275		117,445		76,275
Weighted average shares outstanding		2,273,187		101,862		1,171,994		102,956