Quarterly report pursuant to Section 13 or 15(d)

Net Loss Per Share

Net Loss Per Share

3 Months Ended

Mar. 31, 2023

Basic and diluted EPS is provided below for common stock for the three months ended March 31, 2023 and March 31, 2022.

EPS for common stock is computed by dividing the sum of distributed earnings and undistributed earnings by the weighted average number of shares outstanding for the period. The weighted average number of common shares outstanding as of March 31, 2023 and 2022 include the weighted average effect of the pre-funded warrants issued in connection with the underwritten public offering that closed in January 2021, the exercise of which requires nominal consideration for the delivery of the shares of common stock.

Diluted net loss per share includes the potential dilutive effect of common stock equivalents as if such securities were converted or exercised during the period, when the effect is dilutive. Common stock equivalents include: (i) outstanding stock options and restricted stock units, which are included under the “treasury stock method” when dilutive; and (ii) common stock to be issued upon the exercise of outstanding warrants, which are included under the “treasury stock method” when dilutive. Because the impact of these items is generally anti-dilutive during periods of net loss, there is no difference between basic and diluted loss per common share for periods with net losses. In periods of net loss, losses are allocated to the participating security only if the security has not only the right to participate in earnings, but also a contractual obligation to share in the Company’s losses.

The following tables set forth the computation of basic and diluted net loss per share of common stock for the three months ended March 31, 2023 and March 31, 2022 (in thousands, except share and per share amounts):


	Three Months Ended
	March 31, 2023
Net loss	$	(9,955)
Weighted average shares	11,722,764
Basic and diluted net loss per share	$	(0.85)


	Three Months Ended
	March 31, 2022
Net loss	$	(22,051)
Weighted average shares	9,399,518
Basic and diluted net loss per share	$	(2.35)

The following outstanding securities have been excluded from the computation of diluted weighted shares outstanding for the three months ended March 31, 2023 and 2022, as they could have been anti-dilutive:


	Three Months Ended
	March 31,
	2023	2022
Stock options	1,460,346	1,424,004
Warrants on common stock1	4,136,990	367,187
Restricted Stock Units	—	938

1 The weighted average number of common shares outstanding as of March 31, 2023 and 2022 included the weighted average effect of the 114,007 pre-funded warrants outstanding because the exercise of such warrants requires only nominal consideration ($0.012 per share exercise price for each pre-funded warrant). Therefore, these pre-funded warrants are not included in the table above.