Earnings Per Share
 12 Months Ended
Dec. 31, 2018
Earnings Per Share.  
Earnings Per Share

3. Earnings Per Share

 

Basic earnings per common share are computed by dividing net loss attributable to common shareholders by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock options, unvested restricted stock, common stock warrants, and preferred stock) were exercised or converted into common stock or resulted in the issuance of common stock (net of any assumed repurchases) that then shared in the earnings of the Company, if any. This is computed by dividing net earnings by the combination of dilutive common share equivalents, which is comprised of shares issuable under outstanding warrants, the conversion of preferred stock, and the Company’s share-based compensation plans, and the weighted average number of common shares outstanding during the reporting period. Since the Company is in a net loss position, all common stock equivalents would be considered to be anti-dilutive and are, therefore, not included in the determination of diluted earnings per share. Accordingly, basic and diluted loss per share are the same.

 

The following table provides the components of the calculations of basic and diluted earnings per share (in thousands, except share amounts):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

    

2018

    

2017

    

 

2016

 

Numerator:

 

 

 

 

 

 

 

 

 

 

Net loss attributable to common shareholders

 

$

(78,167)

 

$

(130,178)

 

$

(57,591)

 

Denominator:

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

218,882,337

 

 

216,343,985

 

 

180,619,860

 

The dilutive potential common shares are summarized as follows:

 

 

 

 

 

 

 

 

 

 

At December 31,

 

    

2018

    

2017

    

2016

Stock options outstanding (1)

 

21,957,150

 

19,872,029

 

14,760,054

Restricted stock outstanding  (2)

 

2,347,347

 

234,744

 

13,333

Common stock warrants (3)

 

115,824,142

 

115,824,242

 

14,501,600

Preferred stock (4)

 

17,933,591

 

2,782,075

 

17,490,078

Convertible Senior Notes (5)

 

43,630,020

 

 -

 

 -

Number of dilutive potential common shares

 

201,692,250

 

138,713,090

 

46,765,065

 

(1)

During the years ended December 31, 2018, 2017, and 2016, the Company granted 2,679,667,  5,485,863, and 3,702,500 stock options, respectively.

 

(2)

During the years ended December 31, 2018, 2017, and 2016, the Company granted 2,347,347,  234,744, and zero shares of restricted stock, respectively.

 

(3)

In February 2013, the Company issued 23,637,500 warrants as part of an underwritten public offering with an exercise price of $0.15 per warrant.  Of these warrants issued in February 2013, zero,  100 and 100 were unexercised as of December 31, 2018, 2017 and 2016.

 

In January 2014, the Company issued 4,000,000 warrants as part of an underwritten public offering with an exercise price of $4.00 per warrant.  In December 2016, as a result of additional public offerings, and pursuant to the effect of the anti-dilution provisions of these warrants, the exercise price of the $4.00 warrants was reduced to $0.65. Of these warrants issued in January 2014, all 4,000,000 warrants were exercised during the year ended December 31, 2017, as described in Note 11, Stockholders’ Equity. 

 

In December 2016, the Company issued 10,501,500 warrants as part of two concurrent underwritten public offerings with an exercise price of $1.50 per warrant.  Of these warrants issued in December 2016, all 10,501,500 warrants were exercised during the year ended December 31, 2017, respectively, as described in Note 11, Stockholders’ Equity.

 

In April 2017, the Company issued 5,250,750 warrants with an exercise price of $2.69 per warrant, as described in Note 11, Stockholders’ Equity.  Of these warrants issued in April 2017, none have been exercised as of December 31, 2018.

 

In April 2017, the Company issued warrants to acquire up to 55,286,696 of the Company’s common stock as part of a transaction agreement, subject to certain vesting events, as described in Note 13, Warrant Transaction Agreements.  Of these warrants issued, none have been exercised as of December 31, 2018.

 

In July 2017, the Company issued warrants to acquire up to 55,286,696 of the Company’s common stock as part of a transaction agreement, subject to certain vesting events, as described in Note 13, Warrant Transaction Agreements. Of these warrants issued, none have been exercised as of December 31, 2018.

 

(4)

The preferred stock amount represents the dilutive potential common shares of the Series C, D and E redeemable convertible preferred stock, based on the conversion price of the preferred stock as of December 31, 2018, 2017 and 2016, respectively.  Of the 10,431 Series C redeemable preferred stock issued on May 16, 2013, 7,811 had been converted to common stock through December 31, 2017, with the remainder still outstanding.  Of the 18,500 Series D redeemable convertible preferred stock issued on December 22, 2016, 3,700 shares have been redeemed and the remaining 14,800 have been converted to common stock during the year ended December 31, 2017. On November 1, 2018, the Company issued 35,000 shares of Series E redeemable convertible preferred stock.  As of December 31, 2018, all Series E redeemable convertible preferred stock are outstanding.

 

(5)

In March 2018, the Company issued $100.0 million in aggregate principal amount of 5.5% Convertible Senior Notes. See Note 10, Convertible Senior Notes.