Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding. Diluted EPS is computed after adjusting the numerator and denominator of the basic EPS computation for the effects of dilutive potential common shares outstanding during the period, if any. The effects include adjustments to the numerator for any change in fair market value attributed to the derivative liabilities (related to the Series C convertible preferred stock and warrants, and the convertible loan) during the period the convertible securities are dilutive. The computation of basic and diluted earnings per common share is presented below:



	Three months ended				Nine months ended
(dollars in thousands, except per share data)	September 30,				September 30,
	2014		2013		2014		2013
Basic and Diluted Earnings per Share
Calculation:
Numerator: basic
Net earnings (loss) attributable
to common shareholders:
Continuing operations	$	(4,894)	$	82	$	(18,556)	$	(2,427)
Discontinued operations		1,628		777		2,639		(73)
Net earnings (loss) attributable to
common shareholders - total basic	$	(3,266)	$	859	$	(15,917)	$	(2,500)


Numerator: diluted
Net earnings (loss) attributable
to common shareholders:
Continuing operations	$	(4,894)	$	82	$	(18,556)	$	(2,427)
Preferred C dividend		0		469		0		0
Derivative Liability change
in fair market value		0		(2,674)		0		0
Total continuing operations		(4,894)		(2,123)		(18,556)		(2,427)
Discontinued operations		1,628		777		2,639		(73)
Net earnings (loss) attributable to
common shareholders - total diluted	$	(3,266)	$	(1,346)	$	(15,917)	$	(2,500)


Denominator:
Weighted average number
of common shares - basic		4,685,815		2,890,873		3,629,588		2,889,224
Restricted stock		0		1,476		0		0
Preferred stock		0		3,750,000		0		0
Warrants		0		3,750,000		0		0
of common shares - diluted		4,685,815		10,392,349		3,629,588		2,889,224

Basic and Diluted Earnings
Per Common Share:
Net earnings (loss) attributable
to common shareholders
per weighted average common share:
Continuing operations - basic	$	(1.04)	$	0.03	$	(5.11)	$	(0.84)
Discontinued operations - basic		0.35		0.27		0.73		(0.03)
Total - Basic EPS	$	(0.69)	$	0.30	$	(4.38)	$	(0.87)

Continuing operations - diluted	$	(1.04)	$	(0.20)	$	(5.11)	$	(0.84)
Discontinued operations - diluted		0.35		0.07		0.73		(0.03)
Total - Diluted EPS	$	(0.69)	$	(0.13)	$	(4.38)	$	(0.87)

Potentially dilutive common shares, if any, have been excluded from the denominator if they are antidilutive to earnings (loss) from continuing operations attributable to common shareholders. The number of weighted average shares of common stock for the three and nine months ended September 30, 2014 is significantly higher than the outstanding shares at September 30, 2013 due to the issuance of common stock from the rights offering occurring during the last month of the second quarter of 2014.

The following table summarizes the weighted average of potentially dilutive securities that have been excluded from the denominator for the purpose of computing diluted earnings per share:



	Three months ended		Nine months ended
	September 30,		September 30,
	2014	2013	2014	2013
Outstanding stock options	17,563	31,003	17,563	31,003
Unvested stock awards outstanding	566	0	7,175	1,555
Warrants	3,750,000	0	3,750,000	3,750,000
Series C preferred stock	18,750,000	0	9,903,846	3,750,000
Convertible debt	0	0	737,179	0
Total potentially dilutive securities
excluded from the denominator	22,518,129	31,003	14,415,763	7,532,558