Processa Pharmaceuticals, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Net Loss Per Common Share, Disclosure

Net Loss Per Common Share, Disclosure

3 Months Ended

Mar. 31, 2016

8. NET LOSS PER COMMON SHARE:

The Company computes loss per share of common stock using the two-class method required for participating securities. The Companys participating securities include all series of its convertible preferred stock. Undistributed earnings allocated to these participating securities are added to net loss in determining net loss applicable to common stockholders. Basic and Diluted loss per share are computed by dividing net loss applicable to common stockholder by the weighted-average number of shares of common stock outstanding.

Outstanding options and warrants underlying 2,357,304 shares were not included in the computation of diluted loss per share because the exercise price was greater than the average market price of the common shares and, therefore, the effect would be anti-dilutive.

The calculation of the numerator and denominator for basic and diluted net loss per common share is as follows:

	For the three months ended March 31,
	2016		2015
Net loss from continuing operations	$	(131,621)	$	(492,426)
Net loss from discontinued operations		(2,004)		(152,180)
Net Loss		(133,625)		(644,606)
Basic and diluted:
Preferred stock cumulative dividend - Series D		10,705		10,589
Income applicable to preferred stockholders		10,705		10,589
Net loss applicable to common stockholders	$	(144,330)	$	(655,195)