Net Loss Per Common Share

Basic earnings (loss) per share is calculated using the two-class method, which is an earnings allocation formula that determines earnings (loss) per share for the holders of the Company’s common shares and holders of the Series B preferred stock. The Series B preferred stock shares contain participation rights in undistributed earnings, but do not share in the losses of the Company. The dividends on the Series B preferred stock were treated as a reduction of earnings attributable to common shareholders.

The following reflects the net loss attributable to common shareholders and share data used in the basic and diluted earnings per share computations using the two class method:



	Three months ended June 30,						Six months ended June 30,
(Amounts in thousands except per share amounts)	2017			2016			2017			2016
Numerator:
Net loss	$	(2,388	)	$	(3,044	)	$	(12,166	)	$	(6,694	)
Dividends accumulated on convertible preferred stock	—			(1,856		)	—			(3,660		)
Net loss attributable to common shareholders	$	(2,388	)	$	(4,900	)	$	(12,166	)	$	(10,354	)
Denominator:
Denominator for basic and diluted EPS:
Weighted-average common shares outstanding	32,765			22,684			32,333			22,644
Net loss per share attributable to common shareholders (basic and diluted)	$	(0.07	)	$	(0.22	)	$	(0.38	)	$	(0.46	)

Common equivalent shares are not included in the diluted per share calculation where the effect of their inclusion would be anti-dilutive. The aggregate number of common equivalent shares (related to options, warrants and preferred stock) that have been excluded from the computations of diluted net loss per common share at June 30, 2017 and 2016 were 5.5 million and 6.4 million, respectively.