Net Income (Loss) Per Common Share

3 Months Ended

Mar. 31, 2017

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 months ended March 31, 2017, 1,943,508 stock options were excluded from the calculation of diluted net income per common share as their inclusion would be anti-dilutive. For the three months ended March 31, 2016, 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 loss per common share:

	Three Months Ended March 31,
	2017			2016
Numerator:
Net loss used to compute net loss per common share:
Basic	$	(7,517	)	$	(3,263	)
Adjustment for change in fair value of liability classified stock options		(133	)		—
Diluted	$	(7,650	)	$	(3,263	)
Denominator:
Weighted average number of common shares:
Basic		17,946,209			14,394,000
Adjustment for dilutive effect of stock options		28,260			—
Diluted		17,974,469			14,394,000
Net loss per common share - basic	$	(0.42	)	$	(0.23	)
Net loss per common share - diluted	$	(0.43	)	$	(0.23	)