Quarterly report pursuant to Section 13 or 15(d)

Net Loss Per Share

Net Loss Per Share

6 Months Ended

Jun. 30, 2023

Basic and diluted EPS is provided below for common stock for the three and six months ended June 30, 2023 and June 30, 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 June 30, 2023 and 2022 include the weighted average effect of pre-funded warrants, 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 and six months ended June 30, 2023 and June 30, 2022 (in thousands, except share and per share amounts):


	Three Months Ended June 30,
	2023		2022
Net loss	$	(8,193)	$	(12,987)
Weighted average shares	13,971,968		9,400,902
Basic and diluted net loss per share	$	(0.59)	$	(1.38)


	Six Months Ended June 30,
	2023		2022
Net loss	$	(18,148)	$	(35,038)
Weighted average shares	12,853,579		9,400,214
Basic and diluted net loss per share	$	(1.41)	$	(3.73)

The following outstanding securities have been excluded from the computation of diluted weighted shares outstanding for the three and six months ended June 30, 2023 and 2022, as they could have been anti-dilutive:


	Three and Six Months Ended
	June 30,
	2023	2022
Stock options	1,849,229	1,379,570
Warrants on common stock1	4,136,990	366,990
Restricted Stock Units	—	—

1 The weighted average number of common shares outstanding includes the weighted average outstanding pre-funded warrants for the period because their exercise price is nominal. The weighted average shares outstanding for the three and six months ended June 30, 2023 include the weighted average effect of 525,909 and 321,096 pre-funded warrants, respectively. The weighted average shares outstanding for the three and six months ended June 30, 2022 included the weighted average effect of 114,007 pre-funded warrants.