MNKD 2017 Annual Report

Year Ended December 31, 2017 2016 2015 Diluted EPS: Net (loss) income (numerator) . . . . . . . . . . . . . . $(117,333) $125,664 $(368,445) Weighted average common shares . . . . . . . . . . 104,245 92,053 81,233 Effect of dilutive securities — common shares issuable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 32 — Adjusted weighted average common shares (denominator) . . . . . . . . . . . . . . . . . . . . . . . . 104,245 92,085 81,233 Net (loss) income per share . . . . . . . . . . . . . . . . $ (1.13) $ 1.36 $ (4.54) Common shares issuable represents incremental shares of common stock which consist of stock options, restricted stock units, warrants, and shares that could be issued upon conversion of the 2021 notes or the Facility Financing Obligation. Potentially dilutive securities outstanding that are considered antidilutive are summarized as follows (in shares): December 31, 2017 2016 2015 Exercise of common stock options . . . . . . . . . . . . 7,089,440 5,530,256 3,955,845 Conversion of convertible notes into common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,875,272 814,561 814,561 Employee stock purchase plan . . . . . . . . . . . . . . . 136,660 43,672 33,986 Exercise of common stock warrants . . . . . . . . . . . 31,856 9,740,597 814,919 Vesting of restricted stock units . . . . . . . . . . . . . . 1,135,216 702,867 360,924 15,268,444 16,831,953 5,980,235 Subsequent to December 31, 2017, the Company entered into an amendment to the Deerfield Facility Financing Obligation allowing additional principal amounts to be converted into equity. See Note 20 – Subsequent Events for further information. 13. Stock Award Plans On May 23, 2013, the Company adopted the 2013 Equity Incentive Plan (the “2013 Plan”) as the successor to and continuation of the 2004 Equity Incentive Plan (the “2004 Plan”). The 2013 Plan consists of 4.3 million additional shares and the number of unallocated shares remaining available for grant for new awards under the 2004 Plan. The 2013 Plan provides for the granting of stock awards including stock options and restricted stock units, to employees, directors and consultants. No additional awards will be granted under the 2004 Plan or under the 2004 Non-Employee Directors’ Stock Option Plan (the “NED Plan”) as all future awards will be made out of the 2013 Plan. The following table summarizes information about the Company’s stock-based award plans as of December 31, 2017: Outstanding Options Outstanding Restricted Stock Units Shares Available for Future Issuance 2004 Equity Incentive Plan . . . . . . . . . . . . . . . 1,231,740 — — 2013 Equity Incentive Plan . . . . . . . . . . . . . . . 5,795,035 1,135,216 1,509,343 2004 Non-Employee Directors’ Stock Option Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,665 — — Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,089,440 1,135,216 1,509,343 111