Net Loss per Common Share

3 Months Ended

Mar. 31, 2021

3. Net Loss per Common Share

Basic net loss per common share is computed by dividing net loss by the weighted-average number of shares of Common Stock outstanding during the period. Potential common stock equivalents are determined using the treasury stock method. For diluted net loss per share purposes, stock options and other stock-based awards are excluded, including shares issued as a result of option exercises but which are subject to repurchase by the Company, whose effect would be anti-dilutive from the calculation. For diluted net loss per share purposes, derivatives to purchase shares of common stock or CHESS depository Interests (CDIs, the Company’s security that was traded on the Australian Securities Exchange) are treated identically because shares of common stock and CDIs are interchangeable at the sole election of the stockholder. For diluted net loss per share purposes, options and warrants conferring the right to purchase shares of common stock or CDIs are excluded from diluted net loss per share calculations as inclusion would have an anti-dilutive effect. For diluted net loss per share purposes, shares of preferred stock that are convertible into shares of common stock are excluded from diluted net loss per share calculations as inclusion would have an anti-dilutive effect. During the three months ended March 31, 2021 and 2020, common stock equivalents were excluded from the calculation of diluted net loss per common share, as their effect was anti-dilutive due to the net loss incurred. Therefore, basic and diluted net loss per share were equivalent in each period presented.

The following potentially dilutive securities have been excluded from the computation of diluted weighted- average shares outstanding as of March 31, 2021 and 2020, as they would be anti-dilutive:

	Three Months Ended March 31,
	2021		2020
Shares of preferred stock convertible into shares of common stock		77,609,875		-
Warrants to purchase common stock		28,532		4,625,425
Options to purchase common stock and other stock-based awards		25,386,995		3,376,154
Total		103,025,402		8,001,579

GI DYNAMICS, INC. 10-Q