Net Loss Per Common Share

12 Months Ended

Dec. 31, 2016

10. Net Loss Per Common Share

Basic earnings or loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. The holders of the Series A preferred stock had rights to participate in common stock dividends, entitling the holders of Series A preferred stock to a dividend payable at the same time and rate per share as the dividend paid on common stock based the number of shares of common stock each share of Series A preferred stock would have converted into if such shares had converted on the record date. The Series A preferred stock, however, did not have a contractual obligation to share in the losses of the Company, and as such, no losses were allocated to the Series A preferred stock for the purposes of the basic loss per share calculation while they were outstanding. Prior to the Company’s incorporation, no common shares were outstanding when the Company operated as MLT.

Diluted earnings or loss per share of common stock is computed similarly to basic earnings or loss per share except the weighted average shares outstanding are increased to include additional shares from the assumed exercise of any common stock equivalents, if dilutive. The Company’s RSAs, stock options, shares of Series A preferred stock, Convertible Notes and Interim Notes are considered common stock equivalents while outstanding for this purpose. Diluted earnings is computed utilizing the treasury method for the RSAs and stock options, and in the case of the Series A preferred stock, either the two‑class method or the if‑converted method, whichever was more dilutive. Diluted earnings with respect to the Convertible Notes and Interim Notes utilized the if‑converted method, but was not applicable during the years ended December 31, 2016, 2015 and 2014 as no conditions required for conversion had occurred during these periods while the instruments were outstanding. No incremental common stock equivalents were included in calculating diluted loss per share because such inclusion would be anti‑dilutive given the net loss reported for the years ended December 31, 2016, 2015 and 2014. The following table sets forth the computation of basic and diluted loss per share as of December 31, 2016, 2015 and 2014 (in thousands, except share and per share amounts):


	Year Ended
	2016		2015		2014
Numerator:
Net loss	$	(14,586)	$	(9,029)	$	(320)
Adjustment to redemption value on Series A convertible preferred stock		(366)		(2,968)		—
Premium upon substantial modification of convertible notes with certain stockholders		—		(1,047)		—
Net loss attributed to common stock holders	$	(14,952)	$	(13,044)	$	(320)
Denominator:
Basic and diluted weighted average common shares outstanding		5,809,396		2,875,053		1,521,703
Basic and diluted net loss per share	$	(2.57)	$	(4.54)	$	(0.21)

The following potential common shares were not considered in the computation of diluted net loss per share as their effect would have been anti‑dilutive:


	Year Ended
	2016	2015	2014
Restricted stock awards	4,009	348,093	994,613
Stock options	2,242,800	302,842	—
Series A	—	745,637	—
Convertible notes	—	828,751	—