Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

v2.4.0.8
Net Income (Loss) Per Share
6 Months Ended
Jun. 30, 2013
Net Income (Loss) Per Share [Abstract]  
Net Income (Loss) Per Share

3. Net Income (Loss) Per Share

Basic 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 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 six months ended June 30, 2013, and 2012:

 

                                 
    Three months ended June 30,,     Six months ended June 30,  

(in thousands, except per share amounts)

  2013     2012     2013     2012  

Numerator:

                               

Net income (loss) used for basic earnings per share

  $ 5,064     $ (1,724   $ 11,065     $ (6,887

Less change in fair value of warrant liability

    5,362       1,955       2,317       1,939  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income used for diluted earnings per share

  $ (298   $ (3,679   $ 8,748     $ (8,826
   

 

 

   

 

 

   

 

 

   

 

 

 

Denominator:

                               

Basic weighted-average outstanding common shares

    82,527       64,984       80,403       62,185  

Effect of dilutive potential common shares resulting from options

    —         —         1,226       —    

Effect of dilutive potential common shares resulting from warrants

    32       —         4,642       5,908  
   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares outstanding—diluted

    82,559       64,984       86,271       68,093  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) per common share:

                               

Basic

  $ 0.06     $ (0.03   $ 0.14     $ (0.11

Diluted

  $ 0.00     $ (0.06   $ 0.10     $ (0.13

 

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 six months ended June 30, 2013 and 2012:

 

                                 
    Three months ended June 30,     Six months ended June 30,  

(in thousands)

  2013     2012     2013     2012  

Weighted-average anti-dilutive common shares resulting from options

    3,302       6,952       1,175       4,157  

Weighted-average anti-dilutive common shares resulting from warrants

    1,334       11,440       23       4,792  
   

 

 

   

 

 

   

 

 

   

 

 

 
      4,636       18,392       1,198       8,949