Net income per share (Tables)

3 Months Ended

Mar. 31, 2017

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


	Three Months Ended
	March 31,
	2017		2016
Numerator:
Net income	$	1,417,540	$	1,760,305
Amounts allocated to participating preferred stockholders under the two-class method		(123,537)		(210,498)
Net income applicable to common stockholders (basic and dilutive)	$	1,294,003	$	1,549,807
Denominator:
Weighted-average common stock outstanding (basic)		48,917,601		50,771,451
Common equivalent shares from options to purchase common stock		2,436,206		1,291,048
Weighted-average common stock outstanding (diluted)(1)		51,353,807		52,062,499
Basic net income per share applicable to common stockholders	$	0.03	$	0.03
Diluted net income per share applicable to common stockholders(1)	$	0.03	$	0.03

(1)

In accordance with ASC 260-10-45-48, for the three months ended March 31, 2017 and 2016, the Company excluded 396,500 and 996,500, 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
	March 31,
	2017	2016
Stock options	7,500	1,933,471
Convertible preferred stock(1)	4,688,237	6,851,144
Total anti-dilutive securities	4,695,737	8,784,615

(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 months ended March 31, 2017 and 2016.