Abeona Therapeutics Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Basic and Diluted Net Income (Loss) Per Common Share

Basic and Diluted Net Income (Loss) Per Common Share

9 Months Ended

Sep. 30, 2013

Basic and Diluted Net Income (Loss) Per Common Share [Abstract]

Basic and Diluted Net Income (Loss) Per Common Share

(6) Basic and Diluted Net Income (Loss) Per Common Share

Basic net income or loss per share is based upon the weighted average number of common shares outstanding during the period. Diluted net income or loss per share is based upon the weighted average number of common shares outstanding during the period, plus the effect of additional weighted average common equivalent shares outstanding during the period when the effect of adding such shares is dilutive. Common equivalent shares result from the assumed exercise of outstanding stock options and warrants (the proceeds of which are then assumed to have been used to repurchase outstanding stock using the treasury stock method). In addition, the assumed proceeds under the treasury stock method include the average unrecognized compensation expense of stock options that are in-the-money. This results in the “assumed” buyback of additional shares, thereby reducing the dilutive impact of stock options and warrants. Common equivalent shares have not been included in the net loss per share calculations for three and nine months ended September 30, 2012 and the three months ended September 30, 2013, because the effect of including them would have been anti-dilutive.

Basic and diluted net income (loss) per share were determined as follows:

(in thousands, except share and per share amounts)

	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013		2012

Net income (loss)	$	(899	)	$	(15,311	)	$	3,322	$	(31,682	)
Weighted average shares outstanding		25,432,750			24,173,705			25,117,447		24,135,585
Basic net income (loss) per common share	$	(0.04	)	$	(0.63	)	$	0.13	$	(1.31	)

Net income (loss)	$	(899	)	$	(15,311	)	$	3,322	$	(31,682	)
Weighted average shares outstanding		25,432,750			24,173,705			25,117,447		24,135,585
Effect of dilutive options and warrants		-			-			239,189		-
Weighted average shares outstanding assuming dilution		25,432,750			24,173,705			25,356,636		24,135,585
Diluted net income (loss) per common share	$	(0.04	)	$	(0.63	)	$	0.13	$	(1.31	)

We did not include the following securities in the table below in the computation of diluted net income (loss) per common share because the securities were anti-dilutive during the periods presented:

	Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012

Warrants		35,643,943		15,733,943		35,643,943		15,733,943
Stock options		2,509,784		2,668,784		1,959,784		2,668,784
Preferred stock Series A		58,067,234		20,264,551		58,267,234		20,264,551
Preferred stock Series B		20,000,000		-		20,000,000		-
Total		116,220,961		38,667,278		115,670,961		38,667,278

- Definition

The entire disclosure for earnings per share.

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