Net Loss Per Share

9 Months Ended

Sep. 30, 2017

7. Net Loss Per Share

There were no common shares outstanding during the three and nine months ended September 30, 2016, and accordingly, the Company has not presented basic and diluted net loss per share for those periods. Basic and diluted net loss per share for the three and nine months ended September 30, 2017 was calculated as follows:

	Three Months			Nine Months
	Ended September 30,			Ended September 30,
	2017			2017
Numerator:
Net loss	$	(6,815	)	$	(23,134	)
Accretion of preferred stock to redemption value	—			(244		)

Net loss attributable to common stockholders	$	(6,815	)	$	(23,378	)

Denominator:
Weighted average number of common shares outstanding - basic and diluted	9,395,920			8,584,558

Net loss per share attributable to common stockholders - basic and diluted	$	(0.73	)	$	(2.72	)

The Company’s potentially dilutive securities include stock options and convertible preferred stock. These securities were excluded from the computations of diluted net loss per share for the three and nine months ended September 30, 2017 and would have been excluded from the computations for the three and nine months ended September 30, 2016, as the effect would be to reduce the net loss per share. The following table includes the potential common shares, presented based on amounts outstanding at each period end, that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2017	2016	2017	2016

Options to purchase common stock	1,862,621	53,228	1,862,621	53,228
Warrants assumed from Macrocure	54,516	—	54,516	—
Convertible preferred stock and accrued dividends (as converted to common stock)	—	3,491,291	—	3,491,291

	1,917,137	3,544,519	1,917,137	3,544,519

In addition to the potentially dilutive securities noted above, as of September 30, 2016, the Company had outstanding notes payable—related party for which principal and unpaid accrued interest due under the notes will automatically be converted into the class of the Company’s stock issued in the Company’s next qualified financing, as defined, based on a conversion price equal to the price per share paid by the investors in the financing. Because the necessary conditions for conversion of the notes had not been met during the three and nine months ended September 30, 2016, these notes were excluded from the table above. On January 20, 2017, in connection with and prior to the completion of the merger with Macrocure, the Company’s Charter and Bylaws were amended to reflect the conversion of all outstanding shares of the Company’s convertible preferred stock into 3,174,523 shares of common stock, and to reflect the conversion of the outstanding note payable and accrued interest into 1,950,768 shares of common stock.