Net Loss Per Share

Basic net loss per share is computed by dividing the net loss for the year by the weighted average number of common shares outstanding during the year. Diluted net loss per share is calculated in accordance with the treasury stock method for the outstanding stock options and restricted stock units and reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted to common stock. For the three and nine months ended September 30, 2019, the dilutive impact of the outstanding Notes and Bonds issued by the Company (discussed in Note 9) has been considered using the "if-converted" method. The calculation of diluted net 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 options or other securities and the presumed exercise of such securities are dilutive to net 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 such securities from the numerator for the period. Likewise, an adjustment to the denominator is required to reflect the related dilutive shares, if any.

The following tables reconcile the components of the numerator and denominator included in the calculations of diluted net loss per share:



	Three Months Ended September 30,
	2019			2018
Numerator
Net loss attributable to Inovio Pharmaceuticals, Inc. (numerator for use in basic net loss per share)	$	(23,090,693	)	$	(25,015,672	)
Adjustment for decrease in fair value of derivative liability and interest expense	(2,177,250		)	—
Numerator for use in diluted net loss per share	$	(25,267,943	)	$	(25,015,672	)

Denominator
Weighted average number of common shares outstanding (denominator for use in basic net loss per share)	99,007,985			92,423,122
Effect of dilutive potential common shares	3,799,071			—
Denominator for use in diluted net loss per share	102,807,056			92,423,122

Net loss per share, diluted	$	(0.25	)	$	(0.27	)

Net loss per share, basic	$	(0.23	)	$	(0.27	)



	Nine Months Ended September 30,
	2019				2018
Numerator
Net loss attributable to Inovio Pharmaceuticals, Inc. (numerator for use in basic net loss per share)	$	(81,697,181	)		$	(64,005,625	)
Adjustment for decrease in fair value of derivative liability and interest expense	—			—	—
Numerator for use in diluted net loss per share	$	(81,697,181	)		$	(64,005,625	)

Denominator
Weighted average number of common shares outstanding (denominator for use in basic net loss per share)	98,204,375				91,350,117
Effect of dilutive potential common shares	—				—
Denominator for use in diluted net loss per share	98,204,375				91,350,117

Net loss per share, diluted	$	(0.83	)		$	(0.70	)

Net loss per share, basic	$	(0.83	)		$	(0.70	)

The following table summarizes potential shares of common stock that were excluded from the diluted net loss per share calculation because of their anti-dilutive effect for the three months ended September 30, 2019 and 2018:




Common Stock Equivalents	2019	2018
Options to purchase common stock	9,971,297	8,945,275
Restricted stock units	2,121,359	1,711,213
Convertible preferred stock	8,456	8,456
Convertible notes	14,585,653	—
Convertible bonds	—	—
Total	26,686,765	10,664,944




Common Stock Equivalents	2019	2018
Options to purchase common stock	9,971,297	8,945,275
Restricted stock units	2,121,359	1,711,213
Convertible preferred stock	8,456	8,456
Convertible notes	14,585,653	—
Convertible bonds	3,799,071	—
Total	30,485,836	10,664,944