Annual report pursuant to Section 13 and 15(d)

Loss per Share

Loss per Share
12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Loss per Share

Note 3 – Loss per Share


As discussed in Note 2, basic loss per share is computed by dividing the loss available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the income of the Company. For each of the years ended December 31, 2021 and 2020, basic loss per share is the same as diluted loss per share.



The following table sets forth the computation of the Company’s basic and diluted net loss per share available to common stockholders during the years ended December 31, 2021 and 2020:


    2021     2020  
    Year Ended December 31,  
    2021     2020  
Net loss from continuing operations   $ (5,272,373 )   $ (17,643,707 )
Deemed dividends     (506,477,007 )     (263,254,718 )
Net loss available to common stockholders, continuing operations   $ (511,749,380 )   $ (280,898,425 )
Net income (loss) from discontinued operations     10,877,530       (696,067 )
Net loss available to common stockholders   $ (500,871,850 )   $ (281,594,492 )
Basic and diluted weighted average shares of common stock outstanding     548,377       1  
Loss per common share available to common stockholder - basic and diluted                
Continuing operations   $ (933.21 )   $ (280,898,425 )
Discontinued operations   $ 19.84     $ (696,067 )
Total basic and diluted   $ (913.37 )   $ (281,594,492 )


Diluted loss per share excludes all dilutive potential shares if their effect is anti-dilutive. As of December 31, 2021 and 2020, the following potential common stock equivalents were excluded from the calculation of diluted loss per share as their effect was anti-dilutive:


    Year Ended December 31,  
    2021     2020  
Warrants     54,280,658       467  
Convertible preferred stock     48,188,965       403  
Convertible debentures     2,877,783       33  
Stock options     26       26  
      105,347,432       929  


The terms of certain of the warrants, convertible preferred stock and convertible debentures issued by the Company provide for reductions in the per share exercise prices of the warrants and the per share conversion prices of the debentures and preferred stock (if applicable and subject to floors in certain cases) in the event that the Company issues common stock or common stock equivalents (as that term is defined in the agreements) at an effective exercise/conversion price that is less than the then exercise/conversion prices of the outstanding warrants, preferred stock or debentures, as the case may be. In addition, many of these equity-based securities contain exercise or conversion prices that vary based upon the price of the Company’s common stock on the date of exercise/conversion (see Notes 8, 11, 12 and 18). These provisions have resulted in significant dilution of the Company’s common stock.


As a result of these down round provisions, the potential common stock equivalents, including outstanding common stock, totaled 10.2 billion at April 8, 2022, as more fully discussed in Note 18. See Notes 1, 12 and 18 regarding a discussion of the number of shares of the Company’s authorized common stock.