Processa Pharmaceuticals, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Net Loss Per Common Share, Disclosure

Net Loss Per Common Share, Disclosure

12 Months Ended

Dec. 31, 2016

10. 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 2,309,804 shares do not assume conversion, exercise or contingent exercise in the computation of diluted loss per share because 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 year ended December 31,
	2016		2015
Net loss from continuing operations	$	(337,179)	$	(2,982,920)
Net income (loss) from discontinued operations		1,197		(371,307)
Net loss		(335,982)		(3,354,227)
Basic and diluted:
Preferred stock cumulative dividend - Series D		(43,058)		(42,942)
Income applicable to preferred stockholders		(43,058)		(42,942)
Net loss applicable to common stockholders	$	(379,040)	$	(3,397,169)