Quarterly report pursuant to Section 13 or 15(d)

Basic and Diluted Net Income (Loss) Per Common Share

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Basic and Diluted Net Income (Loss) Per Common Share
 9 Months Ended
Sep. 30, 2014
Basic and Diluted Net Income (Loss) Per Common Share [Abstract]  
Basic and Diluted Net Income (Loss) Per Common Share
(7)            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, 2014, 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,
  
   
2014
    
2013
    
2014
    
2013
  
                 
Net income (loss)
  
$
(2,209
)
  
$
(899
)
  
$
(17,026
)
  
$
3,322
  
Weighted average shares outstanding
    
532,258
      
508,655
      
524,595
      
502,349
  
Basic net income (loss) per common share
  
$
(4.15
)
  
$
(1.77
)
  
$
(32.46
)
  
$
6.61
  
                                 
Net income (loss)
  
$
(2,209
)
  
$
(899
)
  
$
(17,026
)
  
$
3,322
  
Weighted average shares outstanding
    
532,258
      
508,655
      
524,595
      
502,349
  
Effect of dilutive options and warrants
    
-
      
-
      
-
      
4,784
  
Weighted average shares outstanding assuming dilution
    
532,258
      
508,655
      
524,595
      
507,133
  
Diluted net income (loss) per common share
  
$
(4.15
)
  
$
(1.77
)
  
$
(32.46
)
  
$
6.55
  

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,
  
   
2014
  
2013
  
2014
  
2013
  
           
Warrants
    
577,756
      
712,879
      
577,756
      
712,879
  
Stock options
    
393,834
      
50,196
      
393,834
      
39,196
  
Preferred stock Series A
    
1,157,348
      
1,165,345
      
1,157,348
      
1,165,345
  
Preferred stock Series B
    
400,000
      
400,000
      
400,000
      
400,000
  
Total
    
2,528,938
      
2,328,420
      
2,528,938
      
2,317,420