Quarterly report pursuant to Section 13 or 15(d)

7. Stockholders' Equity

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7. Stockholders' Equity
 3 Months Ended
Mar. 31, 2016
Equity [Abstract]  
Stockholders' Equity

Preferred Stock

 

During the three months ended March 31, 2015, the former Medytox Series B preferred shareholders earned dividends totaling $523,050. At March 31, 2016 and December 31, 2015, accrued dividends of $1,684,148 and $2,099,148, respectively, were included in accrued expenses. All outstanding Medytox Series B preferred shares were cancelled in connection with the Merger in exchange for shares of Rennova Series B Convertible Preferred Stock, which only receives dividends when dividends are declared on our common stock.

 

During the three months ended March 31, 2016, Series C preferred shareholders converted a total of 182 shares of Series C preferred stock into 117,420 shares of Common Stock.

 

Common Stock

 

During the three months ended March 31, 2016, the Company issued an aggregate of 13,300 shares of the Company’s common stock to a consultant for services. The Company recognized $9,310 in compensation costs associated with these issuances.

 

Stock Options

 

During the three months ended March 31, 2016 and 2015, no stock options were granted or forfeited.

 

Basic and Diluted Income per Share

 

The following table presents the reconciliation of the numerators and denominators used in the calculation of earnings per share for the three months ended March 31, 2016 and 2015. For the three months ended March 31, 2015, all share and per share amounts have been restated as a result of the Merger.

 

    Three Months Ended March 31,  
    2016     2015  
Basic:                
Numerator - net income (loss) available to common stockholders   $ (4,244,011 )     483,959  
Denominator - weighted-average shares outstanding     14,816,586       11,937,530  
                 
Net income (loss) per share - Basic   $ (0.29 )   $ 0.04  
                 
Diluted:                
Numerator:                
Net income (loss) available to common stockholders   $ (4,244,011 )   $ 483,959  
Interest expense on convertible debt, net of taxes     –       46,912  
      (4,244,011 )     530,871  
                 
Denominator:                
Weighted-average shares outstanding     14,816,586       11,937,530  
Weighted-average equivalent shares options and warrants     –       354,901  
Weighted-average equivalent shares from convertible debt     –       409,638  
Weighted-average equivalent shares from Series C convertible preferred stock     –       –  
Weighted-average equivalent shares from Series D convertible preferred stock     –       73,643  
Weighted-average equivalent shares from Series E convertible preferred stock     –       33,623  
      14,816,586       12,809,335  
                 
Net income (loss) per share - Diluted   $ (0.29 )   $ 0.04  

 

Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As of March 31, 2016 and 2015, the following potential common stock equivalents were excluded from the calculation of Diluted EPS as their effect was anti-dilutive:

 

    March 31,     March 31,  
    2016     2015  
Stock options outstanding     1,822,675       9,923,474  
Warrants outstanding     6,898,560       –  
Convertible debt     8,791,343       –  
Convertible preferred stock     11,422,977       –  
                 
      28,935,555       9,923,474