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Net Income (Loss) Per Share
 9 Months Ended
Sep. 30, 2015
Earnings Per Share [Abstract]  
Net Income (Loss) Per share
Net Income (Loss) Per Share
Basic net income (loss) per share is computed by dividing the net income (loss) for the year by the weighted average number of common shares outstanding during the year. Diluted income (loss) per share is calculated in accordance with the treasury stock method and reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted to common stock. The calculation of diluted income (loss) per share requires that, to the extent the average market price of the underlying shares for the reporting period exceeds the exercise price of the warrants and the presumed exercise of such securities are dilutive to loss per share for the period, an adjustment to net loss used in the calculation is required to remove the change in fair value of the warrants from the numerator for the period. Likewise, an adjustment to the denominator is required to reflect the related dilutive shares, if any, under the treasury stock method.
The following tables reconcile the components of the numerator and denominator included in the calculations of diluted income (loss) per share:

Three Months Ended September 30,

2015

2014
Numerator



Net income (loss) attributable to Inovio Pharmaceuticals, Inc.
$
5,594,468


$
(7,177,575
)
Reflect adjustment for decrease in fair value of warrant liability
(616,477
)

(271,022
)
Numerator for use in diluted income (loss) per share
$
4,977,991


$
(7,448,597
)




Denominator



Weighted average number of common shares outstanding
72,029,644


60,392,911

Effect of dilutive potential common shares
1,931,593


209,920

Denominator for use in diluted income (loss) per share
73,961,237


60,602,831


 
 
 
Net income (loss) per share, diluted
$
0.07

 
$
(0.12
)

 
Nine Months Ended September 30,
 
2015
 
2014
Numerator
 
 
 
Net loss attributable to Inovio Pharmaceuticals, Inc.
$
(11,235,561
)
 
$
(28,710,309
)
Reflect adjustment for decrease in fair value of warrant liability
(928,978
)
 
(1,996,544
)
Numerator for use in diluted loss per share
$
(12,164,539
)
 
$
(30,706,853
)
 
 
 
 
Denominator
 
 
 
Weighted average number of common shares outstanding
66,846,481

 
58,625,740

Effect of dilutive potential common shares
172,480

 
310,674

Denominator for use in diluted loss per share
67,018,961

 
58,936,414

 
 
 
 
Net loss per share, diluted
$
(0.18
)
 
$
(0.52
)


The following table summarizes potential common shares that were excluded from the diluted net income (loss) per share calculation because of their anti-dilutive effect for the three months ended September 30, 2015:
 
 
Common Stock Equivalents
2015
 
2014
Options to purchase common stock
2,812,185

 
4,833,877

Warrants to purchase common stock
—

 
978,052

Convertible preferred stock
8,456

 
8,456

Total
2,820,641

 
5,820,385


The following table summarizes potential common shares that were excluded from the diluted net loss per share calculation because of their anti-dilutive effect for the nine months ended September 30, 2015:
 

Common Stock Equivalents
2015
 
2014
Options to purchase common stock
5,875,211

 
4,833,877

Warrants to purchase common stock
580,904

 
978,052

Restricted stock units
230,000

 
—

Convertible preferred stock
8,456

 
8,456

Total
6,694,571

 
5,820,385