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
 6 Months Ended
Jun. 30, 2014
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 six months ended June 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 June 30,
    
Six months ended June 30,
  
   
2014
    
2013
    
2014
    
2013
  
                         
Net income (loss)
   $ (13,233 )   $ 867     $ (14,817 )   $ 4,221  
Weighted average shares outstanding
     26,191,311       25,111,713       26,034,995       24,957,183  
Basic net income (loss) per common share
   $ (0.51 )   $ 0.03     $ (0.57 )   $ 0.17  
                                 
Net income (loss)
   $ (13,233 )   $ 867     $ (14,817 )   $ 4,221  
Weighted average shares outstanding
     26,191,311       25,111,713       26,034,995       24,957,183  
Effect of dilutive options and warrants
     -       357,516       -       357,516  
Weighted average shares outstanding assuming dilution
    26,191,311       25,469,229       26,034,995       25,314,699  
Diluted net income (loss) per common share
   $ (0.51 )   $ 0.03     $ (0.57 )   $ 0.17  
                                 

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 June 30,
    
Six months ended June 30,
  
   
2014
    
2013
    
2014
    
2013
  
                         
Warrants
     28,885,570       35,683,943       28,885,570       35,683,943  
Stock options
     11,941,700       1,967,284       11,941,700       1,967,284  
Preferred stock Series A
     57,867,234       58,267,234       57,867,234       58,267,234  
Preferred stock Series B
     20,000,000       20,000,000       20,000,000       20,000,000  
Total
     118,694,504       115,918,461       118,694,504       115,918,461