Net Income (Loss) Per Common Share

6 Months Ended

Jun. 30, 2016

4.	Net income (loss) per common share:

Basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per common share is computed by adjusting the numerator and denominator of the basic net income (loss) per share calculation for the potential impact of dilutive securities.

For the three and six month periods ended June 30, 2016, 1,934,452 and 1,841,096 stock options, respectively, were excluded from the calculation of diluted net income per common share as their inclusion would be anti-dilutive (three months ended June 30, 2015 - 389,283). For the six months ended June 30, 2015, all stock options were anti-dilutive and were excluded from the diluted weighted average common shares outstanding for the period.

The following is a reconciliation of the numerators and denominators of basic and diluted net income (loss) per common share:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Numerator:
Net income (loss) used to compute net income (loss) per common share:
Basic	$	(6,016	)	$	1,168		$	(9,279	)	$	(7,988	)
Adjustment for change in fair value of liability classified stock options		(58	)		(2,244	)		(100	)		—
Diluted	$	(6,074	)	$	(1,076	)	$	(9,379	)	$	(7,988	)
Denominator:
Weighted average number of common shares:
Basic		14,408,108			14,241,827			14,401,054			14,227,203
Adjustment for dilutive effect of stock options		26,494			888,151			27,106			—
Diluted		14,434,602			15,129,978			14,428,160			14,227,203
Net income (loss) per common share - basic	$	(0.42	)	$	0.08		$	(0.64	)	$	(0.56	)
Net loss per common share - diluted	$	(0.42	)	$	(0.07	)	$	(0.65	)	$	(0.56	)