NOTE 12 NET (LOSS) INCOME PER SHARE

Basic net (loss) income per share is computed by dividing the net (loss) income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net (loss) income per share is computed similarly except that the weighted average number of common shares is increased to reflect all dilutive instruments. Diluted net (loss) income per share is calculated using the treasury stock method. In applying the treasury stock method, employee stock options with an exercise price greater than the average quoted market price of the common shares for the period outstanding are not included in the calculation of diluted net (loss) income per share as the impact is anti-dilutive. Potentially dilutive instruments are not considered in calculating the diluted loss per share, as their effect would be anti-dilutive.

Below is a reconciliation of the basic and diluted weighted average number of common shares and the computations for basic (loss) income per share and diluted (loss) income for the years ended December 31, 2017, 2016 and 2015:


	Year ended December 31,
	2017		2016		2015
	(in thousands, except per share amounts)
Net (loss) income	$	(10,634)	$	21,055	$	(20,450)

Weighted average common shares outstanding:		313,887		298,772		300,341
Effect of employee stock-based awards		—		1,702		—
Diluted shares outstanding:		313,887		300,474		300,341

Net (loss) income per share:
Basic	$	(0.03)	$	0.07		(0.07)
Diluted	$	(0.03)	$	0.07		(0.07)

Options to purchase 2.2 million shares of common stock at an average exercise price of $3.97 at December 31, 2017 were not included in the computation of diluted weighted average shares outstanding because their exercise price exceeded the average price of the Company’s common stock for the year ended December 31, 2016 and their effect would have been anti-dilutive. Warrants to purchase 10.35 million shares of common stock at a price of $2.70 were not included in the computation of diluted weighted average shares outstanding because their effect would have been anti-dilutive. In 2017 and 2015, as the Company was in a loss position, all potentially dilutive instruments were anti-dilutive and therefore not included in the calculation of diluted net loss per share.