NET LOSS PER COMMON SHARE

9 Months Ended

Sep. 30, 2014

Notes to Financial Statements

Note 3 - NET LOSS PER COMMON SHARE

Basic loss per common share is calculated by dividing net loss available to common shareholders for the period by the weighted-average number of common shares outstanding during the period. Diluted loss per common share is calculated by dividing net loss available to common shareholders for the period by the weighted-average number of common shares outstanding during the period, adjusted to include, if dilutive, potential dilutive shares consisting of convertible preferred stock, convertible notes payable, stock options and warrants, calculated using the treasury stock and if-converted methods.  For diluted loss per share calculation purposes, the net loss available to common shareholders is adjusted to add back any preferred stock dividends and any interest on convertible debt reflected in the condensed consolidated statement of operations for the respective periods.

 The table below presents the computation of basic and diluted loss per share:

(Amounts in thousands except share and per share amounts)	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Numerator for basic earnings (loss) per share:
Net income (loss)	$	(2,228	)	$	339		$	(5,993	)	$	(8,055	)
Preferred dividends		(13	)		(13	)		(38	)		(38	)
Net income (loss) available to common shareholders		(2,241	)		326		$	(6,031	)	$	(8,093	)
Numerator for diluted earnings (loss) per share:
Net income (loss) available to common shareholders	$	(2,241)		$	326		$	(6,031	)	$	(8,093	)
Preferred dividends		—			13			—			—
Interest expense on convertible debt	$	—		$	1		$	—		$	—
Net income (loss) for diluted earnings (loss) per share	$	(2,241	)	$	340		$	(6,031	)	$	(8,093	)
Denominator for basic earnings (loss) per share – weighted-average shares outstanding		93,162,548			83,750,636			91,260,530			79,751,523
Effect of dilutive securities		—			9,601,556			—			—
Denominator for diluted earnings (loss) per share – weighted-average shares outstanding		93,162,548			93,352,192			91,260,530			79,751,523
Basic income (loss) per share:
Net income (loss) per share	$	(0.02	)	$	0.00		$	(0.07	)	$	(0.10	)
Preferred dividends		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Net income (loss) per share available to common shareholders	$	(0.02	)	$	0.00		$	(0.07	)	$	(0.10	)
Diluted income (loss) per share:
Net income (loss) per share	$	(0.02	)	$	0.00		$	(0.07	)	$	(0.10	)

The following potentially dilutive securities have been excluded from the computations of diluted weighted-average shares outstanding for the periods presented, as they would be anti-dilutive:

Dilutive securities	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Restricted stock grants		—		—		—		—
Convertible notes payable		—		—		—		—
Convertible preferred stock		46,991		45,393		46,991		46,179
Stock options		3,663,670		103,315		3,663,670		102,095
Warrants		1,057,778		—		1,057,778		135,505
Total dilutive securities		4,768,439		148,708		4,768,439		283,779