Net Loss Per Share
 9 Months Ended
Sep. 30, 2014
Earnings Per Share [Abstract]  
Net Loss Per Share
Net Loss Per Share
Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common share equivalents outstanding for the period. Common stock equivalents are only included when their effect is dilutive. Potentially dilutive securities which include convertible preferred stock, warrants, convertible notes payable and outstanding stock options under the stock option plan have been excluded from the computation of diluted net loss per share as they would be anti-dilutive. For all periods presented, there is no difference in the number of shares used to compute basic and diluted shares outstanding due to the Company’s net loss position. All share and per share amounts for all periods presented in the following table have been adjusted retroactively to reflect the exchange for Tranzyme, shares as of the date of the Merger.
The following table presents the computation of net loss per share (in thousands, except share and per share data):
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Numerator
 
 
 
 
 
 
 
Net loss from continuing operations
$
(6,661
)
 
$
(6,065
)
 
$
(19,086
)
 
$
(8,883
)
Net income (loss) from discontinued operations
58

 
(1,337
)
 
1,195

 
(1,337
)
Net loss
$
(6,603
)
 
$
(7,402
)
 
$
(17,891
)
 
$
(10,220
)
Denominator
 
 
 
 
 
 
 
Weighted average common shares outstanding used to compute net loss per share, basic and diluted
19,330,888

 
9,669,320

 
16,778,047

 
3,683,156

Net loss per share of common stock, basic and diluted
 
 
 
 
 
 
 
Net loss per share from continuing operations
$
(0.34
)
 
$
(0.63
)
 
$
(1.14
)
 
$
(2.41
)
Net income (loss) per share from discontinued operations
—

 
(0.14
)
 
0.07

 
(0.36
)
Net loss per share
$
(0.34
)
 
$
(0.77
)
 
$
(1.07
)
 
$
(2.77
)

The following weighted average outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share of common stock for the periods presented because including them would have been anti-dilutive:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
Convertible preferred stock
—

 
736,570

 
—

 
3,472,405

Convertible preferred stock warrants
—

 
2,003

 
—

 
14,902

Common stock warrants
938,882

 
158,939

 
938,882

 
140,722

Common stock options
1,985,217

 
633,163

 
1,827,527

 
573,789

Total
2,924,099

 
1,530,675

 
2,766,409

 
4,201,818

In addition to the potentially dilutive securities noted above, the Company had outstanding convertible notes payable and accrued interest that were converted into 186,217 shares of common stock upon completion of the Merger. The Company has excluded these convertible notes payable from the table above.