Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2021

Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock outstanding during the period. Diluted net income (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. 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 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 options or other securities and the presumed exercise of such securities are dilutive to net loss per share for the period, an adjustment to the 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. For the three and nine months ended September 30, 2021 and the nine months ended September 30, 2020, basic and diluted net loss per share were the same, as the assumed exercise or settlement of stock options and restricted stock units and the potentially dilutive shares issuable upon conversion of the Notes and Bonds would have been anti-dilutive.

The following tables reconcile the components of the numerator and denominator included in the calculation of diluted net income (loss) per share:


	Three Months Ended September 30,
	2021		2020
Numerator
Net income (loss) attributed to Inovio Pharmaceuticals, Inc. (numerator for use in basic and diluted net income (loss) per share)	$	(60,169,041)	$	19,171,336



Denominator
Weighted average number of common shares outstanding (denominator for use in basic net income (loss) per share)	210,304,836		165,355,540
Effect of dilutive potential common shares	—		9,020,862
Denominator for use in diluted net income (loss) per share	210,304,836		174,376,402

Net income (loss) per share, diluted	$	(0.29)	$	0.11

Net income (loss) per share, basic	$	(0.29)	$	0.12


	Nine Months Ended September 30,
	2021		2020
Numerator
Net loss attributed to Inovio Pharmaceuticals, Inc. (numerator for use in basic and diluted net loss per share)	$	(196,711,130)	$	(142,072,777)



Denominator
Weighted average number of common shares outstanding (denominator for use in basic net loss per share)	207,455,684		148,656,454
Effect of dilutive potential common shares	—		—
Denominator for use in diluted net loss per share	207,455,684		148,656,454

Net loss per share, diluted	$	(0.95)	$	(0.96)

Net loss per share, basic	$	(0.95)	$	(0.96)

The following table summarizes potential shares of common stock 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, 2021 and 2020:



Common Stock Equivalents	2021	2020
Options to purchase common stock	10,462,252	119,438
Service-based restricted stock units	2,446,102	—
Performance-based restricted stock units	663,353	—
Convertible preferred stock	3,309	3,309
Convertible notes	3,049,980	11,039,574

December 2019 Bonds	—	1,009,450
Total	16,624,996	12,171,771

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 nine months ended September 30, 2021 and 2020:



Common Stock Equivalents	2021	2020
Options to purchase common stock	10,462,252	9,290,347
Service-based restricted stock units	2,446,102	2,586,915
Performance-based restricted stock units	663,353	663,353
Convertible preferred stock	3,309	3,309
Convertible notes	3,049,980	11,039,574

December 2019 Bonds	—	1,009,450
Total	16,624,996	24,592,948