Annual report pursuant to Section 13 and 15(d)

3. Loss per Share

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3. Loss per Share
12 Months Ended
Dec. 31, 2016
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 for the gain on the fair value of the Company’s derivative liability for the year ended December 31, 2015 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, 2016, and 2015:

 

      Year Ended December 31,
        2016     2015
Numerator              
Net loss     $ (11,753,414)   $ (8,229,825)
Undeclared dividends on Series A-1, A-2 and A-4 Convertible Preferred Stock       (404,706)     (403,600)
Dividends declared on Series B-2 Convertible Preferred Stock       (1,983,301)     (1,174,620)
Gain on nominal warrants                           -        (1,930,083)
Net loss attributable to common stockholders     $ (14,141,421)   $ (11,738,128)
               
Denominator              
Basic and diluted weighted average common shares outstanding       15,406,184     8,873,766
               
Loss per share              
Basic and diluted     $ (0.92)   $ (0.92)
               

 

For the years ended December 31, 2016 and 2015, the following outstanding securities were excluded from the calculation of diluted earnings per common share because of their anti-dilutive effects:

 

        For the Year Ended December 31,
        2016   2015
Warrants             2,902,862             3,011,760
Convertible preferred stock             2,628,389             3,825,942
Stock options             2,183,723             1,158,251
              7,714,974             7,995,953

 

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”) of $0.4 million for the years ended December 31, 2016 and 2015.  As of December 31, 2016, Fusion’s Board of Directors had not declared any dividends on the Series A Preferred Stock, and the Company had accumulated $4.7 million of preferred stock dividends. 

 

Fusion’s Board of Directors declared a dividend of $2.0 million and $1.2 million forthe years ended December 31, 2016 and 2015, respectively, related to the Company’s Series B-2 Convertible Preferred Stock (the “Series B Preferred Stock”), which, as permitted by the terms of the Series B-2 Preferred Stock, was paid in the form of 1,140,568 and 434,201 shares of Fusion’s common stock. The dividends paid in 2016 include an additional $1.2 million in dividends paid in the form of 666,667 shares of Fusion’s common stock to a holder of 5,000 shares of Series B-2 Preferred Stock in connection with the holder’s agreement to convert all of its Series B-2 Preferred Stock holdings into shares of Fusion’s common stock