Net income per share (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of computation of basic and diluted net income (loss) per share


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Numerator:
Net income	$	2,225,413	$	105,971	$	5,268,441	$	3,692,925
Amounts allocated to participating preferred stockholders under the two-class method		(196,868)		(12,284)		(466,065)		(428,090)
Net income applicable to common stockholders (basic and dilutive)	$	2,028,545	$	93,687	$	4,802,376	$	3,264,835
Denominator:
Weighted-average common stock outstanding (basic)		49,179,596		51,360,758		49,848,634		52,985,106
Common equivalent shares from options and warrants to purchase common stock		2,074,627		1,023,633		2,153,615		626,862
Weighted-average common stock outstanding (diluted)(1)		51,254,223		52,384,391		52,002,249		53,611,968
Basic net income per share applicable to common stockholders	$	0.04	$	0.00	$	0.10	$	0.06
Diluted net income per share applicable to common stockholders(1)	$	0.04	$	0.00	$	0.09	$	0.06

(1)

In accordance with ASC 260-10-45-48, for the three and nine months ended September 30, 2016 and 2015, the Company excluded 396,500 and 1,446,500, respectively, of contingently-issued restricted shares from diluted weighted average common stock outstanding as the contingencies were neither (a) satisfied at the reporting date nor (b) would have been satisfied if the reporting date was at the end of the contingency period.

Schedule of weighted average securities outstanding that have been excluded from the diluted net income (loss) per share calculation because the effect would have been anti-dilutive


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2016	2015	2016	2015
Stock options	—	3,588,862	581,665	5,096,019
Restricted stock awards	—	—	23,574	98,147
Convertible preferred stock(1)	4,688,237	6,851,144	5,493,407	6,851,144
Total anti-dilutive securities	4,688,237	10,440,006	6,098,646	12,045,310

(1)

Diluted net income per share increases when convertible preferred stock is included in the required sequence in the diluted earnings per share computation. As such, convertible preferred stock is excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2016 and 2015.