Processa Pharmaceuticals, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Net Loss Per Share of Common Stock

Net Loss Per Share of Common Stock

9 Months Ended

Sep. 30, 2018

Note 7 – 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 without the impact of potential dilutive common shares outstanding because 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 the Company’s stock options and warrants grants, and the if-converted method is used to determine the dilutive effect of the Company’s Senior Convertible Notes.

The computation of net loss per share for the three and nine months ended September 30, 2018 and 2017 is shown below.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Basic and diluted net loss per share:
Net loss	$	(852,822	)	$	(711,567	)	$	(3,155,874	)	$	(1,222,453	)
Weighted-average number of common shares-basic and diluted		38,674,265			31,745,242			36,869,323			31,745,242

Basic and diluted net loss per share	$	(0.02	)	$	(0.02	)	$	(0.09	)	$	(0.04	)

The outstanding options and warrants to purchase common stock and the shares issuable under the Senior Convertible Note were excluded from the computation of diluted net income per share as their effect would have been anti-dilutive for the periods presented below:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Stock options and purchase warrants		3,947,186		-		3,947,186		-
Senior convertible notes		119,195		-		119,195		-