Note 12: Net (Loss) Income Per Common Share

Basic and diluted net (loss) income per share attributable to common and participating stockholders is computed by dividing net (loss) income by the weighted average number of common shares outstanding after subtracting the weighted average of any unvested restricted shares outstanding, as these shares are subject to repurchase. There were no dilutive effects from any equity instruments for any period prior to 2014 or any period reflecting a net loss, therefore diluted net (loss) income per share was the same as basic net (loss) income for periods presented prior to January 30, 2014, and for the years ended December 31, 2015 and December 31, 2014, which both reflect a net loss attributable to common and participating stockholders.

Diluted net income per share would be 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 incremental 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 WMIH’s 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 years ended December 31, 2015 and December 31, 2014 as the Company reported a net loss attributable to common and participating stockholders for the periods.

The following table presents the calculation of basic and diluted net (loss) income per share for periods presented (in thousands, except per share data):

	Year ended December 31, 2015			Year ended December 31, 2014			Year ended December 31, 2013
Numerator for basic and diluted net (loss) income per share:
Net (loss) income	$	(61,833	)	$	3,070		$	338
Series B preferred stock dividends		(17,748	)		—			—
Preferred deemed dividend		—			(9,455	)		—
Net (loss) income attributable to common and participating stockholders	$	(79,581	)	$	(6,385	)	$	338
Denominator for basic and diluted net (loss) income per share:
Weighted-average shares outstanding		204,776,405			202,208,619			201,419,306
Weighted-average unvested restricted shares outstanding		(3,029,792	)		(1,338,691	)		(1,115,238	)
Denominator for basic and diluted net (loss) income per share:		201,746,613			200,869,928			200,304,068
Basic and diluted net (loss) income per share attributable to common and participating stockholders	$	(0.39	)	$	(0.03	)	$	0.00

The following table summarizes shares subject to exercise or vesting conditions as more fully described in Note 9: Capital Stock. These shares could potentially be dilutive in future periods if we realize net income attributable to common and participating stockholders and the contingent or unvested stock is converted to WMIH common stock. The cash payment of $84.4 million, which would be received upon exercise of the warrants, has not been considered as an offset to the dilutive shares under warrants outstanding below.

	Potential dilution to common
	Minimum shares		Maximum shares
Restricted shares subject to vesting		4,197,396		4,197,396
Series A Preferred Stock		10,065,629		10,065,629
Warrants outstanding		61,400,000		61,400,000
Series B Preferred Stock		266,666,667		342,857,143
Potential dilutive shares if converted to common		342,329,692		418,520,168