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

6 Months Ended

Jun. 30, 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):



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019			2018
Numerator:
Net income (loss)	$	1,229	$	3,186	$	(8,155	)	$	3,805
Denominator for basic and diluted net income (loss) per share:
Weighted average common shares outstanding for basic	98,633		90,713		98,557			90,613
Dilutive potential common stock outstanding:
Stock options and RSU's	22,296		19,431		—			13,597
Warrants	—		2,322		—			2,081
Weighted average common shares outstanding for diluted	120,929		112,466		98,557			106,291
Basic net income (loss) per share	$	0.01	$	0.04	$	(0.08	)	$	0.04
Diluted net income (loss) per share	$	0.01	$	0.03	$	(0.08	)	$	0.04

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):



	Three months ended June 30,		Six months ended June 30,
	2019	2018	2019	2018
Stock options	—	600	18,368	600
Performance stock options	—	—	7,250	—
Total	—	600	25,618	600

The above table excludes 10,750,000 unvested stock options for the three and six months ended June 30, 2019 and 2018, which vest upon the completion of future performance conditions.