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NET LOSS PER SHARE

6 Months Ended

Jun. 30, 2018

NOTE 8: NET LOSS PER SHARE

The Company accounts for and discloses net income (loss) per common share in accordance with ASC Topic 260, Earnings Per Share. Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding. In addition, in computing the dilutive effect of convertible securities, the numerator is adjusted to add back any convertible preferred dividends. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares that would have been outstanding during the period assuming the issuance of common shares for all potential dilutive common shares outstanding. Potential common shares consist of potential future exercises of outstanding stock options and common stock warrants. Because the inclusion of potential common shares would be anti-dilutive for all periods presented they have been excluded from the calculation.

The following table summarizes the Company’s calculation of net loss per common share:


	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Net Loss Per share
Numerator
Net loss	$	(4,142,577	)	$	(2,241,489	)	$	(6,016,959)		$	(3,945,043	)
Deemed dividend attributable to preferred stock		(4,782,100	)		(2,568,132	)		(4,782,100)			(2,568,132	)
Net loss attributable to common shareholders	$	(8,924,677	)	$	(4,809,621	)	$	(10,799,059)		$	(6,513,175	)
Denominator
Weighted average common shares outstanding		3,073,803			623,004			2,864,033			470,139
Basic and diluted net loss per share	$	(2.90	)	$	(7.72	)	$	(3.77	)	$	(13.85	)

The following table sets forth the number of potential common shares excluded from the calculation of net loss per diluted share for the three and six months ended June 30, 2018 and 2017 because including them would be anti-dilutive:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Options to purchase common stock		200,954		93,464		187,391		62,841
Series A convertible preferred stock				182,030				91,518
Series B convertible preferred stock		900,367				452,671
Warrants to purchase common stock		2,275,808		511,650		1,599,074		273,905
Total		3,377,129		787,144		2,239,136		428,264

For the three and six months ended June 30, 2018 and 2017, the average price of our common stock was less than the exercise price of the vested stock options and exercisable warrants.