Quarterly report pursuant to Section 13 or 15(d)

4. Loss per share

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4. Loss per share
3 Months Ended
Mar. 31, 2017
Earnings Per Share [Abstract]  
4. Loss per share

Basic and diluted loss per share is computed by dividing the loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period.

 

The following table sets forth the computation for basic and diluted net income per share for the three months ended March 31, 2017 and 2016:

 

     Three Months Ended March 31,    
    2017     2016  
Numerator            
Net loss   $ (3,481,948 )   $ (2,533,545 )
Undeclared dividends on Series A-1, A-2 and A-4 Convertible Preferred Stock     ( 99,518 )     ( 100,623 )
Conversion price reduction on Series B-2 Preferred Stock (see note 13)     ( 623,574 )     -  
Series B-2 warrant exchange (see note 13)     ( 347,190 )     -  
Dividends declared on Series B-2 Convertible Preferred Stock     ( 183,827 )     ( 1,431,359 )
Net loss attributable to common stockholders   $ (4,736,057 )   $ (4,065,527 )
                 
Denominator                
Basic and diluted weighted average common shares outstanding     20,707,699       13,741,366  
                 
Loss per share                
Basic and diluted   $ (0.23 )   $ (0.30 )

 

For the three months ended March 31, 2017 and 2016, the following were excluded from the calculation of diluted earnings per common share because of their anti-dilutive effects:

 

    For the Three Months Ended March 31,  
    2017     2016  
Warrants     2,697,679       3,005,337  
Convertible preferred stock     2,063,125       2,627,795  
Stock options     2,151,073       1,123,508  
      6,911,877       6,756,640  

 

The net loss per common share calculation includes a provision for preferred stock dividends on Fusion’s outstanding Series A-1, A-2 and A-4 preferred stock (the “Series A Preferred Stock”) of $0.1 million for the three months ended March 31, 2017 and 2016. Through March 31, 2017, the Board of Directors of Fusion has never declared a dividend on any series of the Series A Preferred Stock, resulting in approximately $4.8 million of accumulated preferred stock dividends. The Fusion Board declared dividends on the Company’s Series B-2 Convertible Preferred Stock (the “Series B-2 Preferred Stock”) of $0.2 million and $1.4 million for the three months ended March 31, 2017 and 2016, respectively, which, as permitted by the terms of the Series B-2 Preferred Stock, was paid in the form of 106,876 and 791,946 shares of Fusion’s common stock for the three months ended March 31, 2017 and 2016, respectively.