Quarterly report pursuant to Section 13 or 15(d)

4. Loss per share

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4. Loss per share
6 Months Ended
Jun. 30, 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 of basic and diluted net income per share for the three and six months ended June 30, 2017 and 2016:

 

    Three Months Ended June 30,     Six Months Ended
June 30,
 
    2017     2016     2017     2016  
Numerator                        
Net loss     (2,877,375 )     (2,680,338 )   $ (6,359,323 )   $ (5,213,883 )
Undeclared dividends on Series A-1, A-2 and A-4 Convertible Preferred Stock     (100,624 )     (100,624 )     (200,141 )     (201,247 )
Conversion price reduction on Series B-2 Preferred Stock (see note 13)     -       -       (623,574 )     -  
Series B-2 warrant exchange (see note 13)     -       -       (347,191 )     -  
Dividends declared on Series B-2 Convertible Preferred Stock     (139,874 )     (184,215 )     (323,701 )     (1,615,574 )
Net loss attributable to common stockholders   $ (3,117,873 )   $ (2,965,177 )   $ (7,853,930 )   $ (7,030,704 )
                                 
Denominator                                
Basic and diluted weighted average common shares outstanding     22,408,335       14,864,768       21,562,714       14,306,170  
                                 
Loss per share                                
Basic and diluted   $ (0.14 )   $ (0.20 )   $ (0.36 )   $ (0.49 )

 

For the six months ended June 30, 2017 and 2016, the following were excluded from the calculation of diluted earnings per common share because of their anti-dilutive effects:

 

    For the Six Months Ended June 30,  
    2017     2016  
Warrants     2,657,900       2,971,685  
Convertible preferred stock     2,065,230       2,629,645  
Stock options     2,160,525       1,158,984  
      6,883,655       6,760,314  

 

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 (collectively, the “Series A Preferred Stock”) for the three and six months ended June 30, 2017 of $0.1 million and $0.2 million, respectively. The provision for dividends on the Series A Preferred Stock for the three and six months ended June 30, 2016 was $0.1 million and $0.2 million, respectively.. Through June 30, 2017, the Board of Directors of Fusion has never declared a dividend on any series of the Series A Preferred Stock, resulting in approximately $4.9 million of accumulated preferred stock dividends.

 

The Fusion Board declared dividends on the Company’s Series B-2 Cumulative Convertible Preferred Stock (the “Series B-2 Preferred Stock”) of $0.1 million and $0.2 million for the three months ended June 30, 2017 and 2016, respectively, and $0.3 million and $1.6 million for the six months ended June 30, 2017 and 2016, respectively. As permitted by the terms of the Series B-2 Preferred Stock, dividends were paid in the form of 205,776 and 887,576 shares of Fusion’s common stock for the six months ended June 30, 2017 and 2016, respectively.