| Net Loss Per Share |
Net Loss Per Share
Basic loss per share is computed using the weighted-average number of common shares outstanding during the applicable period. Diluted loss per share is computed using the weighted-average number of common shares and the dilutive effect of contingent shares outstanding during the applicable period. Potentially dilutive contingent shares, which consist of stock options, restricted stock units (including performance stock units), liability warrants, warrants issued to third parties and accounted for as equity instruments, convertible senior notes and contingently issuable shares, have been excluded from the diluted loss per share calculation when the effect of including such shares is anti-dilutive.
The following table sets forth the computation of basic and diluted net loss per share of common stock (in thousands, except per share amounts):
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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2018 |
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2017 |
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2018 |
|
2017 |
Net loss (numerator): |
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Net loss – basic and diluted |
$ |
(43,228 |
) |
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$ |
(52,968 |
) |
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$ |
(127,423 |
) |
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$ |
(222,708 |
) |
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Shares (denominator): |
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Weighted-average shares – basic and diluted |
91,408 |
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|
89,194 |
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|
91,101 |
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|
86,710 |
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Loss per share - basic and diluted |
$ |
(0.47 |
) |
|
$ |
(0.59 |
) |
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$ |
(1.40 |
) |
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$ |
(2.57 |
) |
The following weighted average common equivalent shares are excluded from the calculation of the Company’s net loss per share as their inclusion would have been anti-dilutive (in thousands):
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2018 |
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2017 |
|
2018 |
|
2017 |
Employee stock options |
6,149 |
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5,686 |
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5,993 |
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6,133 |
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Restricted stock units (including performance stock units) |
1,387 |
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1,143 |
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2,793 |
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1,458 |
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Equity warrants (1)
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— |
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— |
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— |
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|
471 |
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Public SPAC Warrants (2)
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— |
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6,173 |
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|
707 |
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|
6,173 |
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2.75% convertible senior notes due 2035 |
4,447 |
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4,447 |
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4,447 |
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4,447 |
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EMC deferred consideration (3)
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— |
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1,439 |
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— |
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3,737 |
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Contingently issuable shares (4)
|
900 |
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|
900 |
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|
900 |
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|
900 |
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Searchlight Penny Warrants (5)
|
18,066 |
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— |
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12,375 |
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— |
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Searchlight Market Warrants (5)
|
13,000 |
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— |
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|
8,905 |
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— |
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(1) |
These are Legacy Row 44 warrants originally issuable for Row 44 common stock and Row 44 Series C preferred stock, which later became issuable for our Common Stock. During the nine months ended September 30, 2017, these Legacy Row 44 warrants expired.
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(3) |
In connection with the EMC Acquisition on July 27, 2016 (the “EMC Acquisition Date”), we were obligated to pay $25.0 million in cash or stock, at our option, on July 27, 2017, which we elected to settle in 5,080,049 newly issued shares of our common stock on that date. No remaining obligation remains outstanding as of September 30, 2018.
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(4) |
In connection with the Sound Recording Settlement, we are obligated to issue 500,000 shares of our common stock to UMG when and if the closing price of our common stock exceeds $10.00 per share, and 400,000 shares of our common stock to UMG when and if the closing price of our common stock exceeds $12.00 per share. See Note 9. Commitments and Contingencies.
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(5) |
On March 27, 2018 we sold to Searchlight (and associated entities) $150.0 million in aggregate principal amount of our Second Lien Notes as well as warrants to acquire an aggregate of 18,065,775 shares of the Company’s common stock at an exercise price of $0.01 per share (the “Penny Warrants”) and warrants to acquire an aggregate of 13,000,000 shares of Common Stock at an exercise price of $1.57 per share (the “Market Warrants”). See Note 11. Common Stock, Share-Based Awards and Warrants.
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