Earnings per Share

6 Months Ended

Jun. 30, 2015

11. Earnings per Share

Basic income (loss) per common share is determined by dividing income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. Diluted income (loss) per share is computed by dividing the income (loss) attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period. The treasury stock method is used to determine the dilutive effect of the Company’s stock option grants, SARs, and warrants, and the if-converted method is used to determine the dilutive effect of the Company’s Notes. The assumed conversion of the Notes would result in a loss on extinguishment of debt which would cause a net loss in the three months ended June 30, 2014 and the six months ended June 30, 2015 and June 30, 2014; thus, the effect would be anti-dilutive. The following common stock equivalents were excluded in the calculation of diluted income (loss) per share because their effect would be anti-dilutive as applied to the income (loss) from continuing operations applicable to common stockholders for the three and six months ended June 30, 2015 and 2014:

	Three Months ended June 30,		Six Months ended June 30,
	2015	2014	2015	2014
	(unaudited)		(unaudited)

Shares underlying Convertible Senior Secured Notes	—	7,548,143	2,791,624	7,733,266
Warrants to purchase common stock	28,613	20,571	25,950	20,928
Stock options, stock appreciation rights, and non-vested stock options	—	—	—	259,478

The following table sets forth the computation of basic and diluted net income per share for the three and six months ended June 30, 2015 and 2014, in thousands, except share and per share amounts:

	Three Months ended June 30,					Six Months ended June 30,
	2015			2014		2015		2014
	(unaudited)					(unaudited)
Numerator, in thousands:
Net income (loss) used for calculation of basic EPS	$	2,005		$	3,202	$	2,923	$	(12,342	)

Interest expense on convertible debt	331			—		—		—
Changes in fair value of derivative liabilities	(195		)	—		—		—
Loss on extinguishment of outstanding debt	241			—		—		—
Loss on extinguishment of outstanding debt, as if converted	(553		)	—		—		—

Total adjustments	(176		)	—		—		—

Net income (loss) used for calculation of diluted EPS	$	1,829		$	3,202	$	2,923	$	(12,342	)


Denominator:
Weighted average shares outstanding, basic	47,911,932			42,056,285		46,246,866		41,595,232

Effect of dilutive potential common shares:
Shares underlying Convertible Senior Secured Notes	2,417,586			—		—		—
Shares issuable to settle interest make-whole derivatives	246,105			—		—		—
Stock options, stock appreciation rights, and non-vested stock options	1,697,926			315,852		1,441,126		—

Total potential dilutive common shares	4,361,617			315,852		1,441,126		—

Weighted average shares outstanding, diluted	52,273,549			42,372,137		47,687,992		41,595,232


Net income (loss) per share, basic	$	0.04		$	0.08	$	0.06	$	(0.30	)
Net income (loss) per share, diluted	$	0.03		$	0.08	$	0.06	$	(0.30	)