The Lovesac Company Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Basic and Diluted Net Loss per Common Share

Basic and Diluted Net Loss per Common Share

3 Months Ended

May 05, 2019

BASIC AND DILUTED NET LOSS PER COMMON SHARE

NOTE 5 – BASIC AND DILUTED NET LOSS PER COMMON SHARE

The following table presents the calculation of loss per share for the thirteen weeks ended May 5, 2019 and May 6, 2018:

	For the thirteen weeks ended
	May 5, 2019			May 6, 2018
Numerator:
Net loss - Basic and diluted	$	(9,101,777	)	$	(5,683,248	)
Preferred dividends and deemed dividends		-			(1,901,016	)
Net loss attributable to common shares		(9,101,777	)		(7,584,264	)
Denominator:
Weighted average number of common shares for basic and diluted net loss per share		13,669,944			6,065,238
Basic and diluted net loss per share	$	(0.67	)	$	(1.25	)

Diluted net loss per common share includes, in periods in which they are dilutive, the effect of those potentially dilutive securities where the average market price of the common stock exceeds the exercise prices for the respective periods.

As of May 5, 2019, there were 1,179,697, of potentially dilutive shares which may be issued in the future, including 104,681 shares of common stock related to restricted stock units and warrants to purchase 1,075,016 shares of common stock. As of May 6, 2018, there were 1,031,853 of potentially dilutive shares which may be issued in the future, including 232,878 shares of common stock relating to restricted stock and warrants to purchase 798,975 shares of common stock. These were excluded from the diluted loss per share calculation because the effect of including these potentially dilutive shares was antidilutive.