NOTE 10 – BASIC AND DILUTED LOSS PER SHARE

Basic net loss per share is computed using the weighted average number of common stock and fully vested RSUs outstanding during the period. In computing diluted loss per share, basic loss per share is adjusted to take into account the potential dilution that could occur upon: (i) the exercise of options and non-vested RSUs granted under employee stock compensation plans, and the exercise of warrants using the treasury stock method; and (ii) the conversion of the convertible preferred stock, convertible note and convertible loan using the “if-converted” method, by adding to net loss the change in the fair value of the convertible loan and convertible note, net of tax benefits, and by adding the weighted average number of shares issuable upon assumed conversion of these instruments.

Options to purchase 873,172 and 890,493 shares of common stock at an average exercise price of $0.1516 and $0.1518 per share were outstanding as of March 31, 2022 and December 31, 2021, respectively, but were not included in the computation of diluted EPS because to do so would have had antidilutive effect on the basic loss per share.

Preferred stock, which was convertible into 7,731,043 shares of common stock was outstanding as of March 31, 2022 and 2021 but was not included in the computation of diluted EPS because to do so would have had antidilutive effect on the basic loss per share.

The convertible loan was not included in the calculation of the diluted loss per share as the loan is convertible into shares only on contingent event which have yet to occur as of March 31, 2022 and 2021.

The convertible note was not included in the calculation of the diluted loss per share as the note is convertible into shares only on contingent event which have yet to occur as of March 31, 2022 and 2021.

Warrants are convertible into 256,242 and 120,899 of the Company’s preferred stock were outstanding as of March 31,2022 and 2021, respectively, but were not included in the computation of diluted EPS because to do so would have had antidilutive effect on the basic loss per share.

Warrants are convertible into 77,366 and 12,042 of the Company’s common stock were outstanding as of March 31, 2022 and 2021, respectively, but were not included in the computation of diluted EPS because to do so would have had antidilutive effect on the basic loss per share.