v3.8.0.1
Note 14 - Net Loss Per Share of Common Stock
 12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Earnings Per Share [Text Block]
14.
Net Loss per Share of Common Stock
 
The Company
’s basic net loss per share of common stock is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding for the period. The diluted net loss per share of common stock is computed by giving effect to all potential common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, options to purchase common stock and warrants to purchase common stock were considered to be common stock equivalents. In periods with a reported net loss, common stock equivalents are excluded from the calculation of diluted net loss per share of common stock if their effect is antidilutive.
 
The PIPE warrants expired during the year ended
December 31, 2017.
During the year ended
December 31, 2016,
the exercise price of the PIPE warrants exceeded the average of AcelRx’s closing share price in the period. As a result, the PIPE warrants were anti-dilutive during the year ended
December 31, 2016.
However, during the year ended
December 31, 2015,
the PIPE warrants had a dilutive impact to net loss per share due to a lower share price at
December 31, 2015,
compared to the closing share price on
December 
31,
2014.
The decrease in share price created a lower Black-Scholes value and lower liability for the PIPE warrants, which resulted in other income during the year ended
December 31, 2015.
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 PIPE warrants and the presumed exercise of such securities are dilutive to loss per share for the period, adjustments to net loss used in the calculation are required to remove the change in fair value of the PIPE warrants for the period. Likewise, adjustments to the denominator are required to reflect the related dilutive shares.
 
The following table is a reconciliation of the numerators and denominators used in the calculation of basic and diluted net loss per share computations for the years ended
December
 
31,
2017,
2016
and
2015:
 
   
Years Ended December
31,
  
   
201
7
    
201
6
    
201
5
  
   
(in thousands, except share and per share amounts)
  
Numerator:
                        
Net loss used to compute net loss per share
                        
Basic
   $
(51,508
)
   $
(43,157
)
   $
(24,399
)
Adjustments for change in fair value of warrant liability
    
—
      
—
      
(2,120
)
Diluted
   $
(51,508
)
   $
(43,157
)
   $
(26,519
)
Denominator:
                        
Weighted average shares outstanding used to compute net loss per share:
                        
Basic
    
46,883,535
      
45,313,118
      
44,300,099
  
Dilutive effect of warrants
    
—
      
—
      
168,341
  
Diluted
    
46,883,535
      
45,313,118
      
44,468,440
  
Net loss per share
—basic
   $
(1.10
)
   $
(0.95
)
   $
(0.55
)
Net loss per share
—diluted
   $
(1.10
)
   $
(0.95
)
   $
(0.60
)
 
The following outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share of common stock for the periods presented because including them would have been antidilutive:
 
   
Year Ended December
31,
  
   
201
7
    
201
6
    
201
5
  
ESPP and stock options to purchase common stock
    
8,767,783
      
6,395,879
      
4,699,121
  
Convertible debt into common stock
    
—
      
553,763
      
553,763
  
Common stock warrants
    
176,730
      
692,611
      
180,155