EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2015

Basic earnings per share includes no dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the periods presented. The calculation of basic earnings per share for the nine months ended September 30, 2015 includes the weighted average of common shares outstanding. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity, such as convertible preferred stock, stock options, warrants or convertible securities. The calculation of diluted earnings per share for the nine months ended September 30, 2015 does not include options to purchase 2,129,924 shares, warrants to purchase 219,868 shares of common stock, Series B Preferred stock which is convertible into 8,032,274 shares of common stock and warrants to purchase 4,032,267 shares due to their anti-dilutive effect.

The following is a reconciliation of the numerator and denominator for basic and diluted earnings per share for the nine months ended September 30, 2015 and 2014:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Basic Earnings per Share
Numerator:
Net income available to common shareholders	$	(2,972,571	)	$	(1,929,370	)	$	(20,384,221	)	$	5,933,877
Denominator:
Weighted-average shares outstanding	28,198,701			25,151,660			28,165,427			23,077,914
Basic earnings per share	$	(0.11	)	$	(0.08	)	$	(0.72	)	$	0.26

Diluted Earnings per Share
Numerator:
Net income available to common shareholders	$	(2,972,571	)	$	(1,929,370	)	$	(20,384,221	)	$	5,933,877
Denominator:
Weighted-average shares outstanding	28,198,701			25,151,660			28,165,427			23,077,914
Effect of dilutive securities
Stock options and warrants	—			—			—			1,116,993
Preferred stock	—			—			—			630,419
Diluted weighted-average shares outstanding	28,198,701			25,151,660			28,165,427			24,825,326
Diluted earnings per share	$	(0.11	)	$	(0.08	)	$	(0.72	)	$	0.24