Basic and Diluted Loss Per Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Basic and Diluted Loss Per Share

BASIC AND DILUTED LOSS PER SHARE

The Company computes net loss per share in accordance with accounting guidance that requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the condensed consolidated statement of operations and comprehensive loss. Basic EPS is computed by dividing net loss for the period by the weighted average number of shares outstanding during the period. Basic EPS excludes Class B Shares issued to Management Holders until the shares are no longer subject to the Repurchase Rights (see Note 11). Class B Shares issued to Management Holders will be included in the calculation of Diluted EPS using the treasury stock method. Diluted EPS is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period, increased by potentially dilutive common shares that were outstanding during the period. Diluted EPS excludes all potential dilutive shares if their effect is anti-dilutive. Potentially dilutive common shares include stock options and restricted stock (see Note 16). There were no potentially dilutive securities for the three and six months ended June 30, 2013.

Excluded from the calculation of diluted EPS for the three and six months ended June 30, 2014, are stock options to purchase 255,000 shares of our common stock, 20,000 Class B Shares issued to a Management Holder subject to Repurchase Rights and 50,000 restricted shares, as such securities were anti-dilutive.