MNKD 2017 Annual Report

reclassified to equity as the Company registered the common stock pursuant to a registration statement and continue to be classified in equity as of December 31, 2017. The Company’s stock was delisted from the TASE in November of 2017. During 2014, the Company loaned to Bank of America 1,800,000 shares of common stock under a share lending agreement in connection with the offering of the $100.0 million aggregate principal amount of the 2015 notes. Bank of America was obligated to return the borrowed shares (or, in certain circumstances, the cash value thereof) to the Company on or about the 45th business day following the date as of which the entire principal amount of the 2015 notes ceases to be outstanding, subject to extension or acceleration in certain circumstances or early termination at Bank of America’s option. On October 23, 2015, the 1,800,000 shares of common stock loaned to Bank of America were returned, as the Company settled all payments and deliveries in respect of such convertible notes on August 17, 2015. The Company did not receive any proceeds from the sale of the borrowed shares by Bank of America, but the Company did receive a nominal lending fee of $0.05 per share from Bank of America for the use of borrowed shares. For the year ended December 31, 2015, the Company received $10.1 million in proceeds from the exercise of the February 2012 public offering warrants. There were no warrant exercises during the year ended December 31, 2016 and any unexercised February 2012 public offering warrants expired on February 8, 2016. 12. Net Income (Loss) per Common Share Basic net income (loss) per share excludes dilution for potentially dilutive securities and is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share reflects the potential dilution under the treasury method that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For periods where the Company has presented a net loss, potentially dilutive securities are excluded from the computation of diluted net loss per share as they would be antidilutive. During 2015, 1,800,000 shares of the Company’s common stock, which were loaned to Bank of America pursuant to the terms of a share lending agreement, were issued and outstanding, with the holder of the borrowed shares having all the rights of a holder of the Company’s common stock. As the share borrower was required to return all borrowed shares to the Company, the borrowed shares were not considered outstanding for the purpose of computing and reporting basic or diluted loss per share during the period presented for 2015. These shares were returned to the Company in the third quarter of 2015. The following tables summarize the components of the basic and diluted net income (loss) per common share computations (in thousands, except per share amounts): Year Ended December31, 2017 2016 2015 Basic EPS: Net (loss) income (numerator) . . . . . . . . . . . . . . $(117,333) $125,664 $(368,445) Weighted average common shares (denominator) . . . . . . . . . . . . . . . . . . . . . . . . 104,245 92,053 81,233 Net (loss) income per share . . . . . . . . . . . . . . . . $ (1.13) $ 1.37 $ (4.54) 110