EARNINGS PER SHARE

Loss Per Share

The Company presents basic and diluted earnings per share (“EPS”) for its common stock (“Common Stock”). Basic EPS is calculated by dividing the net loss attributable to stockholders of the Company by the weighted average number of shares of Common Stock outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to stockholders and the weighted average number of shares of Common Stock outstanding adjusted for the effects of all dilutive potential common shares comprised of options granted, unvested restricted stocks, warrants and convertible preferred stock. Potential Common Stock equivalents that have been issued by the Company related to outstanding stock options, unvested restricted stock and warrants are determined using the treasury stock method, while potential common shares related to Series A Preferred Stock are determined using the “if converted” method.

The Company's Series A Convertible Preferred Stock, par value $0.0001 per share (the “Series A Preferred Stock”) is considered a participating security, which means the security may participate in undistributed earnings with Common Stock. The holders of the Series A Preferred Stock would be entitled to share in dividends, on an as-converted basis, if the holders of Common Stock were to receive dividends. The Company is required to use the two-class method when computing EPS when it has a security that qualifies as a participating security. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. In determining the amount of net earnings to allocate to Common Stock holders, earnings are allocated to both common and participating securities based on their respective weighted-average shares outstanding during the period. Diluted EPS for the Company’s Common Stock is computed using the more dilutive of the two-class method or the if-converted method.

The following table sets forth the computation of basic and diluted income (loss) per common share (in thousands, except for per share amounts):



	Three Months Ended March 31,
	2015			2014
Numerator:
Loss from continuing operations, net of income taxes	$	(15,905	)	$	(25,256	)
Loss from discontinued operations, net of income taxes	(3,768		)	(58		)
Net loss	(19,673		)	(25,314		)
Accrued dividends on Series A Preferred Stock	(453		)	—
Deemed dividend on Series A Preferred Stock	(1,164		)	—
Loss attributable to common stockholders	$	(21,290	)	$	(25,314	)

Denominator - Basic and Diluted:
Weighted average number of common shares outstanding	68,637			68,171

Loss per Common Share:
Loss from continuing operations, basic and diluted	$	(0.26	)	$	(0.37	)
Loss from discontinuing operations, basic and diluted	(0.05		)	—
Net loss, basic and diluted	$	(0.31	)	$	(0.37	)

The loss attributable to common stockholders is used as the basis of determining whether the inclusion of common stock equivalents would be anti-dilutive. Accordingly, the computation of diluted shares for the three months ended March 31, 2015 excludes the effect of securities issued in connection with the Purchase Agreement (as defined below) the Company entered into on March 9, 2015 (see Note 4 - PIPE Transaction) as their inclusion would be anti-dilutive to loss attributable to common stockholders, including the (i) 625,000 shares of Series A Preferred Stock with an initial conversion price of $5.17, (ii) 1,800,000 Class A Warrants with an exercise price of $5.17 and the (iii) 1,800,000 Class B Warrants with an exercise price of $6.45. The computation of diluted shares for the three months ended March 31, 2014 excludes the effect of 3.1 million warrants with an exercise price of $10.00 issued in connection with the acquisition of Critical Homecare Solutions Holdings, Inc. (“CHS”) as their inclusion would be anti-dilutive to loss attributable to common stockholders. In addition to the warrants, the computation of diluted shares for the three months ended March 31, 2015 and 2014, excludes the effect of 5.8 million and 3.8 million shares, respectively, of stock options and restricted stock awards as their inclusion would be anti-dilutive to loss attributable to common stockholders.