7. NET LOSS PER SHARE

 

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share for the three months ended March 31, 2018 is computed by dividing net income by the sum of the weighted average number of shares of common stock and the dilutive potential common stock equivalents then outstanding.  Potential common stock equivalents consist of stock options, non-vested restricted stock and warrants. Since there is a net loss attributable to common stockholders for the three months ended March 31, 2018, the inclusion of common stock equivalents in the computation for that period would be antidilutive.

 

The following potentially dilutive securities have been excluded from the computation of diluted net income (loss) per share since their inclusion would be antidilutive:

 

		Three Months Ended March 31,
		2018			2017
Warrants			11,787,470			8,760,446
Preferred shares as converted into common stock			615,947			—
Stock options			509,392			508,733
Non-vested restricted stock			286,668			—
Total potentially dilutive shares			13,199,477			9,269,179