Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share of Common Stock

Net Income (Loss) Per Share of Common Stock

9 Months Ended

Sep. 30, 2020

Net Income (Loss) Per Share of Common Stock

6. Net Income (Loss) Per Share of Common Stock

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding. For the nine months ended September 30, 2020 and each of the three and nine months ended September 30, 2019, the Company incurred a net loss and therefore diluted net loss per share is the same as basic net loss per share as the Company excluded certain potentially dilutive securities from the computation of diluted weighted average shares outstanding as they would have been anti-dilutive. For the three months ended September 30, 2020, the impact of the outstanding 2020 Warrants was determined to be dilutive. As a result, the Company adjusted the numerator amount used in the calculation of net income (loss) per diluted share to remove the gain associated with the change in fair value of $8,826,913. Additionally, the

1,269,938

net shares required under the treasury stock method upon exercise of the 2020 Warrants were included in the denominator in the calculation of diluted net loss per share.

The following table sets forth the computation of basic and diluted net

income

(loss) per share for common stockholders:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Net income (loss) – basic	$	3,444,431		$	(5,359,118	)	$	(21,751,291	)	$	(2,439,009	)
Less: decrease in fair value of 2020 Warrants, net of tax		(8,826,913	)		—			—			—

Net loss – diluted	$	(5,382,482	)	$	(5,359,118	)	$	(21,751,291	)	$	(2,439,009	)
Shares used in computing basic net income (loss) income per share		27,809,169			7,940,931			21,069,057			7,940,931
Plus: dilutive effect of 2020 Warrants		1,269,938			—			—			—

Shares used in computing diluted net loss per share		29,079,107			7,940,931			21,069,057			7,940,931

Basic net income (loss) per share	$	0.12		$	(0.67	)	$	(1.03	)	$	(0.31	)
Diluted net loss per share	$	(0.19	)	$	(0.67	)	$	(1.03	)	$	(0.31	)

The following table sets forth the potentially dilutive securities outstanding for the three and nine months ended September 30, 2020 and 2019 that were excluded from the computation of diluted weighted average shares outstanding:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Options to purchase common stock		1,864,631		1,246,580		1,864,631		1,246,580
Warrants to purchase common stock		3,006,499		3,033,905		12,354,580		3,033,905

Total		4,871,130		4,280,485		14,219,211		4,280,485