Molecular Templates, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Net Income (Loss) Per Common Share

Net Income (Loss) Per Common Share

12 Months Ended

Dec. 31, 2017

NOTE 2—NET INCOME (LOSS) PER COMMON SHARE

Basic net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by giving effect to all potential dilutive common shares, including outstanding options and warrants. The following is the calculation of basic and diluted net loss per share (in thousands, except share and per share data):

	Years Ended December 31,
	2017			2016
Numerator:
Net loss attributable to common shareholders	$	(24,098	)	$	(12,600	)
Denominator:
Weighted-average number of common shares outstanding - basic and diluted		11,400,881			213,420
Net loss per share:
Basic and diluted	$	(2.11	)	$	(59.04	)

In August 2017, in conjunction with the Merger, all of the Private Molecular common stock was exchanged for the Company’s Common Stock at an exchange ratio of 7.7844, before giving effect to the 11:1 reverse stock split as a result of the Merger. Share amounts in the table above reflect this conversion.

The following outstanding warrants and options were split adjusted, and excluded from the computation of diluted net loss per share for the periods presented because including them would have had an antidilutive effect (in thousands):

	Years Ended December 31,
	2017		2016
Shares issuable upon exercise of warrants		3,332		35
Shares issuable upon exercise of stock options		2,769		942