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 net (loss) income per share and diluted net (loss) income for the years ended December 31, 2018, 2017 and 2016:


	Year ended December 31,
	2018		2017		2016
	(in thousands, except per share amounts)
Net (loss) income	$	(44,870)	$	(10,634)	$	21,055

Weighted average common shares outstanding:		337,297		313,887		298,772
Effect of employee stock-based awards		—		—		1,702
Diluted shares outstanding:		337,297		313,887		300,474

Net (loss) income per share:
Basic and diluted	$	(0.13)	$	(0.03)		0.07

For the years ended December 31, 2018 and 2017, all outstanding options to purchase shares of common stock were excluded from the computation of diluted loss per share, 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. For the year ended December 31, 2016 options to purchase 2.0 million shares of common stock at an average exercise price of $3.91 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.

In 2017, warrants to purchase 10.35 million shares of common stock at a price of $2.70 were excluded from the computation of diluted weighted average shares outstanding because their effect would have been anti-dilutive.