Loss Per Share

As previously discussed in Note A, the Company completed a rights offering during January 2016. As per ASC 260-10-55-13 to ASC 260-10-55-14, a rights issue in which the exercise price at issuance is less than the fair value of the stock contains a bonus element that is somewhat similar to a stock dividend. If a rights issue contains a bonus element and the rights issue is offered to all existing shareholders, basic and diluted earnings per share shall be adjusted retroactively for the bonus element for all periods presented. Since the Company offered the right to all existing shareholders at a 20% discount, a bonus element was present. The Company determined the bonus element to be an additional 1.458 million shares of common stock which would be added to the denominator that was used in computing basic and diluted earnings per share during the three- and nine-month periods ending September 30, 2015. The calculation of the bonus element gave rise to the following adjustments to the weighted average number of shares of common stock and loss per share for the three- and nine-month periods ended September 30, 2015:



	Three Months Ended September 30, 2015			Nine Months Ended September 30, 2015

	(in thousands, except per share data)

Weighted average number of common shares, as reported	9,420			9,260
Adjustment	1,458			1,458
Weighted average number of common shares, as adjusted	10,878			10,718

Loss per common share, as reported	$	(1.40	)	$	(2.70	)
Adjustment	$	(0.19	)	$	(0.37	)
Loss per common share, as adjusted	$	(1.21	)	$	(2.33	)