loss per common share
net loss per common share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding
for the period. Diluted net loss per share reflects the weighted-average number of shares of common stock outstanding plus the
potential effect of dilutive securities or contracts which are convertible to common stock, such as stock options (using the treasury
stock method) and shares issuable in future periods, except in cases where the effect would be anti-dilutive. Because OncoCyte
reported net losses for all periods presented, all potentially dilutive common stock are antidilutive for those periods.
computations of basic and diluted net loss per common share for the years ended December 31, 2017, 2016 and 2015 are as follows
(in thousands, except per share amounts):
||Year Ended December 31,|| |
|Weighted average common shares outstanding – basic and diluted||
|| ||30,195|| ||
|| ||26,529|| ||
|| ||21,009|| |
|Net loss per common share – basic and diluted||
following common stock equivalents were excluded from the computation of diluted net loss per common share of common stock for
the years ended December 31, 2017, 2016 and 2015 because including them would have been antidilutive (in thousands):
||Year Ended December 31,|| |
|| ||3,390|| ||
|| ||3,017|| ||
|| ||2,240|| |
|| ||2,779|| ||
|| ||3,246|| ||
|| ||-|| |
executive management team, as a group, represents the entity’s chief operating decision makers. To date, OncoCyte’s
executive management team has viewed OncoCyte’s operations as one segment that includes, the research and development of
diagnostic tests for the detection of cancer. As a result, the financial information disclosed materially represents all of the
financial information related to OncoCyte’s sole operating segment.
reclassifications from general and administrative expenses have been made to present sales and marketing expenses shown on the
statements of operations for the years ended December 31, 2016 and 2015 to conform and be comparable to the year ended December
31, 2017 presentation. These reclassifications have been made as OncoCyte’s sales and marketing expenses have increased
in 2017, thus making separate presentation of those category of expenses more meaningful to the readers of this report. The reclassifications
had no impact to loss from operations or net loss as reported in the statements of operations and had no impact to the statements
of cash flows or to the balance sheets for any period presented.
following accounting standards, which are not yet effective, are presently being evaluated by OncoCyte to determine the impact
that they might have on its financial statements.
January 5, 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments–Overall: Recognition and
Measurement of Financial Assets and Financial Liabilities (ASU No. 2016-01). Changes to the current GAAP model primarily affects
the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure
requirements for financial instruments. In addition, the ASU No. 2016-01 clarified guidance related to the valuation allowance
assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The accounting
for other financial instruments, such as loans, investments in debt securities, and financial liabilities is largely unchanged.
The more significant amendments are to equity investments in unconsolidated entities. In accordance with ASU No. 2016-01, all
equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally
be measured at fair value through earnings. There will no longer be an available-for-sale classification (changes in fair value
reported in other comprehensive income) for equity securities with readily determinable fair values. The classification and measurement
guidance will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods
within those fiscal years. ASU No. 2016-01, when adopted, could have a material impact to OncoCyte’s financial statements
based on the current accounting for shares of BioTime common stock OncoCyte holds as available-for-sale securities.