Annual report pursuant to Section 13 and 15(d)

3. Loss per Share

v3.3.1.900
3. Loss per Share
12 Months Ended
Dec. 31, 2015
Loss Per Share  
3. Loss per Share

Basic and diluted loss per share is computed by dividing (i) loss available to common stockholders, adjusted by approximately $1.9 million and $2.3 million gain on the fair value of the Company’s derivative liability for the year ended December 31, 2015 and 2014, respectively, that was attributable to 728,333 outstanding warrants with a nominal exercise price and dividends paid on Fusion’s preferred stock, by (ii) the weighted-average number of shares of common stock outstanding during the period, increased by the number of shares underlying such warrants with a nominal exercise price as if such exercise had occurred at the beginning of the year.  

 

The following table sets forth the computation of the Company’s basic and diluted net loss per share during the years ended December 31, 2015, and 2014:

 

    Year Ended  
    Year Ended December 31,  
    2015     2014  
Numerator            
Net loss   $ (8,229,825 )   $ (2,567,142 )
Dividends on Series A-1, A-2 and A-4 Convertible Preferred Stock     (403,600 )     (403,600 )
Dividends declared on Series B-2 Convertible Preferred Stock     (1,174,620 )     (1,342,603 )
Gain on nominal warrants     (1,930,083 )     (2,254,172 )
Adjusted loss attributable to common stockholders   $ (11,738,128 )   $ (6,567,517 )
                 
Denominator                
Basic and diluted weighted average common shares outstanding     8,873,766       7,132,427  
Loss per share                
Basic and diluted   $ (1.32 )   $ (0.92 )

 

For the years ended December 31, 2015 and 2014, the following were excluded from the calculation of diluted earnings per common share because of their anti-dilutive effects:

 

    Year Ended December 31,  
    2015     2014  
Warrants     3,011,760       3,436,775  
Convertible preferred stock     3,825,942       4,512,316  
Stock options     1,158,251       607,877  
      7,995,953       8,556,968  

The net loss per common share calculation includes a provision for preferred stock dividends on the Company’s outstanding Series A-1 Preferred Stock, Series A-2 Preferred Stock and Series A-4 Preferred Stock (collectively, the “Series A Preferred Stock”) in the approximate amount of $404,000 for the years ended December 31, 2015 and 2014, respectively.  As of December 31, 2015, Fusion’s Board of Directors had not declared any dividends on the Series A Preferred Stock, and the Company had accumulated approximately $4.3 million of preferred stock dividends. These dividends could be paid, at our option, either in cash or, in approximately 170,142 shares of our common stock.

 

Fusion’s Board of Directors has declared a dividend of approximately $1,174,620 and $1,342,603 for the years ended December 31, 2015 and 2014, respectively, related to the Company’s Series B-2 Preferred Stock (the Series B Preferred Stock”), which, in accordance with the terms of the Series B-2 Preferred Stock, was paid in the form of 434,201 and 299,216, shares of Fusion’s common stock.