CV Sciences, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2019

The Company computes basic net income (loss) per share using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) assumes the conversion, exercise or issuance of all potential common stock equivalents, unless the effect of inclusion would be anti-dilutive. For purposes of this calculation, common stock equivalents include the Company's stock options, including those with performance or market conditions, unvested RSU's, and warrants.

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):



	For the three months ended March 31,
	2019			2018
Numerator:
Net income (loss)	$	(9,384	)	$	619
Denominator for basic and diluted net income (loss) per share:
Weighted average common shares outstanding for basic	95,168			90,513
Dilutive potential common stock outstanding:
Stock options	—			707
RSU's	—			2,000
Performance stock options	—			1,014
Warrants	—			1,402
Weighted average common shares outstanding for diluted	95,168			95,636
Basic net income (loss) per share	$	(0.10	)	$	0.01
Diluted net income (loss) per share	$	(0.10	)	$	0.01

The following common stock equivalents were not included in the calculation of net income (loss) per diluted share because their effect were anti-dilutive (in thousands):



	For the three months ended March 31,
	2019	2018
Stock options	18,580	—
Performance stock options	7,250	—
Total	25,830	—

The above table excludes 10,750,000 unvested stock options for the three months ended March 31, 2019 and 2018, which vest upon the completion of future performance conditions.