Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies
9 Months Ended
Sep. 30, 2019
Summary of Significant Accounting Policies  
Note 3 - Summary of Significant Accounting Policies

Loss Per Share


The Company computes basic net loss per share by dividing net loss by the weighted average number of common shares outstanding for the period and excludes the effects of any potentially dilutive securities. Diluted earnings per share includes the dilution that would occur upon the exercise or conversion of all dilutive securities into common stock using the treasury stock and/or if converted methods, as applicable. Weighted average shares outstanding for the three and nine months ended September 30, 2019 and 2018 includes the weighted average impact of warrants to purchase an aggregate of 2,043,835 shares of common stock because their exercise price was determined to be nominal.


The following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive:


September 30,









Convertible notes



Convertible preferred stock







Convertible notes are assumed to be converted at the rate of $0.75 per common share, which is the conversion price as of September 30, 2019. However, such conversion rates are subject to adjustment under certain circumstances, which may result in the issuance of common shares greater than the amount indicated.


Recently Adopted Accounting Pronouncements


In June 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ( ASU ) No. 2018-07, Compensation Stock Compensation (Topic 718) ( ASU 2018-07 ). ASU 2018-07 is intended to reduce cost and complexity of financial reporting for non-employee share-based payments. Currently, the accounting requirements for non-employee and employee share-based payments are significantly different. ASU 2018-07 expands the scope of Topic 718, which currently only includes share-based payments to employees, to include share-based payments to non-employees for goods or services. Consequently, the accounting for share-based payments to non-employees and employees will be substantially aligned. This ASU supersedes Subtopic 505-50, Equity Equity-Based Payments to Nonemployees. The amendments to ASU 2018 - 07 are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than a company s adoption date of ASU No. 2014-09, (Topic 606), Revenue from Contracts with Customers. The Company adopted ASU 2018-07 effective July 1, 2019 and its adoption did not have a material impact on the Company s condensed consolidated financial position, results of operations or cash flows, except as it relates to the classification of certain share-based payments issued by the Company.