Quarterly report pursuant to Section 13 or 15(d)

Net Loss Per Share of Common Stock

v3.21.1
Net Loss Per Share of Common Stock
3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Net Loss Per Share of Common Stock

Note 8 – Net Loss per Share of Common Stock

 

Basic net loss per share is computed by dividing net loss by the weighted average common shares outstanding. Diluted net loss per share is computed by dividing net loss by the weighted average common shares outstanding, which includes potentially dilutive effect of stock options, warrants and senior convertible notes. Since we experienced a loss for both periods presented, any dilutive common shares outstanding were excluded from the computation as shown below, as they would have an anti-dilutive impact on diluted net loss per share. The treasury-stock method is used to determine the dilutive effect of our stock options and warrants grants, and the if-converted method is used to determine the dilutive effect of the Senior Notes.

 

The computation of net loss per share for the three months ended March 31, 2021 and 2020 was as follows:

 

   

Three months ended

March 31,

 
    2021     2020  
Basic and diluted net loss per share:                
Net loss   $ (2,099,481 )   $ (874,336 )
Weighted average number of common shares-basic and diluted     14,583,698       5,515,566  
                 
Basic and diluted net loss per share   $ (0.14 )   $ (0.16 )

 

As described in Note 1, in December 2019, we determined the sale of the 2019 Senior Notes triggered the full ratchet anti-dilution provision of the common stock we sold in 2018 Private Placement Transactions. As a result, those shareholders were entitled to 28,971 shares of common stock in the fourth quarter of 2019. At March 31, 2020, we accounted for these shares as a common stock dividend payable as they were not issued until June 2020. For purposes of computing our basic and diluted EPS, we included the shares in our weighted number of common shares outstanding for the three months ended March 31, 2020.

 

The following potentially dilutive securities were excluded from the computation of diluted net income per share as their effect would have been anti-dilutive for the periods presented.

 

    2021     2020  
Stock options and purchase warrants     989,531       704,657  
Senior convertible notes     -       57,500