Note 12: Net Income (Loss) Per Common Share

Basic and diluted net income (loss) per share attributable to common shareholders is computed by dividing net income (loss) by the weighted average number of common shares outstanding after subtracting the weighted average of unvested restricted shares outstanding, as these shares are subject to repurchase. There were no dilutive effects from any equity instruments for periods presented which did not have net income, therefore diluted net income (loss) per share was the same as basic net income (loss) for periods that reflect a net loss.

Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding after subtracting the weighted average of any unvested restricted shares outstanding and adding any potentially dilutive common equivalent shares outstanding during the period, if dilutive. Potentially dilutive common equivalent shares are composed of the incremental common shares issuable upon the exercise of warrants for common stock and the potential conversion of preferred shares to common shares, none of which were outstanding prior to January 30, 2014. There were no dilutive effects for the three months ended March 31, 2014 or for the year ended December 31, 2014 as the Company reported a net loss attributable to common shareholders for the periods.

The following table presents the calculation of basic net income (loss) per share for periods presented:

(in thousands, except per share data):

	Three Months ended March 31, 2015			Three Months ended March 31, 2014
Numerator for basic and diluted net income (loss) per share:
Net income (loss)	$	5,501		$	(3,380	)
Preferred deemed dividend		—			(9,455	)
Series B preferred stock dividends		(4,248	)		—
Net income (loss) attributable to common shareholders	$	1,253		$	(12,835	)
Denominator for basic net income (loss) per share:
Weighted-average shares outstanding		202,343,245			201,978,462
Weighted-average unvested restricted shares outstanding		(1,196,680	)		(1,504,392	)
Denominator for basic net income (loss) per share:		201,146,565			200,474,070
Basic net income (loss) per share attributable to common shareholders	$	0.01		$	(0.06	)

The following table presents the calculation of diluted net income (loss) per share for periods presented:

(in thousands, except per share data):

	Three Months ended March 31, 2015			Three Months ended March 31, 2014
Numerator for basic and diluted net income (loss) per share:
Net income (loss)	$	5,501		$	(3,380	)
Preferred deemed dividend		—			(9,455	)
Series B preferred stock dividends		(4,248	)		—
Net income (loss) attributable to common shareholders	$	1,253		$	(12,835	)
Denominator for diluted net income (loss) per share:
Weighted-average shares outstanding		202,343,245			201,978,462
Weighted-average unvested restricted shares outstanding		(1,196,680	)		(1,504,392	)
Effect of dilutive potential shares *		301,292,296			—
Denominator for diluted net income (loss) per share:		502,438,861			200,474,070
Diluted net income (loss) per share attributable to common shareholders	$	0.00		$	(0.06	)

*There were no dilutive effects from any equity instruments for periods presented which did not have net income, therefore diluted net income (loss) per share was the same as basic net income (loss) for periods presented which reflect a net loss.