Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2016

NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is presented in conformity with the two-class method required for participating securities. Participating securities include, or have included, Series B Preferred Stock and restricted stock units ("RSUs").

Under the two-class method, net income is reduced for distributed and undistributed dividends earned in the current period. The remaining earnings are then allocated to Common Stock and the participating securities. The Company calculates the effects of participating securities on diluted earnings per share ("EPS") using both the “if-converted or treasury stock” and "two-class" methods and discloses the method which results in a more dilutive effect. The effects of Common Stock options, warrants, stock appreciation rights and convertible notes on diluted EPS are calculated using the treasury stock method unless the effects are anti-dilutive to EPS.

The following potentially dilutive weighted average securities were excluded from the calculation of diluted net income (loss) per share attributable to common stockholders during the periods presented as the effect was anti-dilutive:



	Three Months Ended March 31, 2016	Three Months Ended March 31, 2015
Options to purchase common stock	87,026	87,026
Stock appreciation rights	2,350,368	2,123,770
Convertible notes	10,838,218	10,838,218
Total	13,275,612	13,049,014

The following table presents the calculation of diluted net loss per share:



	Three Months Ended March 31, 2016		Three Months Ended March 31, 2015
Net income (loss) attributable to the Company’s common stockholders - Basic	$	1,632	$	(38,107	)
Less: effect of participating securities	—		—
Net income (loss) attributable to common stockholders - Dilutive	$	1,632	$	(38,107	)
Shares:
Weighted-average shares used to compute basic net income (loss) per share	43,899,084		44,362,637
Adjustment to reflect warrants to purchase common stock	—		—
Adjustment to reflect stock appreciation right conversions	—		—
Weighted-average shares used to compute diluted net income (loss) per share	43,899,084		44,362,637
Net income (loss) per share attributable to common stockholders:
Diluted	$	0.04	$	(0.86	)