Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

v2.4.0.8
Net Income (Loss) Per Share
9 Months Ended
Sep. 30, 2014
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
3. Net Income (Loss) Per Share
 
Basic net income (loss) per share excludes the effect of dilution and is computed by dividing net income (loss) by the weighted-average number of shares outstanding for the period. Diluted net income (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue shares were exercised into shares. In calculating diluted net income (loss) per share, the numerator is adjusted for the change in the fair value of the warrant liability (only if dilutive) and the denominator is increased to include the number of potentially dilutive common shares assumed to be outstanding during the period using the treasury stock method.
 
The following table sets forth the reconciliation of the numerator and denominator used in the computation of basic and diluted net income (loss) per common share for the three and nine months ended September 30, 2014 and 2013:
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
(in thousands, except per share amounts)
 
2014
 
2013
 
2014
 
2013
 
Numerator:
 
 
 
 
 
 
 
 
 
Net income (loss) used for basic earnings per share
 
$
716
 
$
(1,145)
 
$
(1,930)
 
$
9,920
 
Less change in fair value of warrant liability
 
 
1,461
 
 
(1,010)
 
 
313
 
 
1,306
 
Net (loss) income used for diluted earnings per share
 
$
(745)
 
$
(135)
 
$
(2,243)
 
$
8,614
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic weighted-average outstanding common shares
 
 
88,998
 
 
82,544
 
 
88,975
 
 
81,125
 
Effect of dilutive potential common shares resulting from options
 
 
370
 
 
 
 
309
 
 
624
 
Effect of dilutive potential common shares resulting from warrants
 
 
 
 
 
 
 
 
83
 
Weighted-average shares outstanding—diluted
 
 
89,368
 
 
82,544
 
 
89,284
 
 
81,832
 
Net income (loss) per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
0.01
 
$
(0.01)
 
$
(0.02)
 
$
0.12
 
Diluted
 
$
(0.01)
 
$
(0.00)
 
$
(0.03)
 
$
0.11
 
 
The table below presents common shares underlying stock options and warrants that are excluded from the calculation of the weighted average number of common shares outstanding used for the calculation of diluted net income (loss) per common share. These are excluded from the calculation due to their anti-dilutive effect for the three and nine months ended September 30, 2014 and 2013:
 
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
(in thousands)
 
 
2014
 
 
2013
 
 
2014
 
 
2013
 
Weighted-average anti-dilutive common shares resulting from options
 
 
6,362
 
 
6,767
 
 
6,514
 
 
2,141
 
Weighted-average anti-dilutive common shares resulting from warrants
 
 
3,694
 
 
5,016
 
 
3,828
 
 
234
 
 
 
 
10,056
 
 
11,783
 
 
10,342
 
 
2,375