Net Income (Loss) Per Common Share

9 Months Ended

Sep. 30, 2015

11. Net Income (Loss) per Common Share

Basic net income (loss) per share is calculated using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share gives effect to dilutive stock options and warrants. The Company uses the treasury-stock method to compute diluted earnings per share with respect to its stock options and warrants. The following table sets forth a reconciliation of basic and diluted net income (loss) per share (in thousands except share and per share amounts):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015		2014			2015			2014
Net income (loss)	$	567	$	(4,684	)	$	(42,309	)	$	(16,094	)
Shares used in computing basic net income (loss) per common share		62,274,438		328,929			38,674,889			306,764
Add effect of dilutive securities:
Stock options		8,514,752		—			—			—
Common stock warrants		936,928		—			—			—
Shares used in computing diluted net income (loss) per common share		71,726,118		328,929			38,674,889			306,764
Net income (loss) per common share, basic	$	0.01	$	(14.24	)	$	(1.09	)	$	(52.47	)
Net income (loss) per common share, diluted	$	0.01	$	(14.24	)	$	(1.09	)	$	(52.47	)

The potential dilutive securities excluded from diluted net income (loss) per common share were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Convertible preferred stock		—		46,734		—		46,734
Options to purchase common stock		285		5,982		9,889		5,982
Convertible preferred stock warrants		—		108		—		108
Common stock warrants		3		1,154		947		1,154
Convertible notes		—		1,122		—		1,122
Total		288		55,100		10,836		55,100