NET LOSS PER COMMON SHARE

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

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 related party lines of credit, 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 June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Numerator for basic and diluted loss per share:
Net loss	$	(2,547	)	$	(2,114	)	$	(5,276	)	$	(4,389	)
Preferred dividends		(514	)		(309	)		(1,021	)		(657	)
Net loss available to common shareholders	$	(3,061	)	$	(2,423	)	$	(6,297	)	$	(5,046	)
Denominator for basic and dilutive loss per share – weighted-average shares outstanding		92,539,230			94,298,567			92,203,567			94,185,967
Net loss	$	(0.03	)	$	(0.02	)	$	(0.06	)	$	(0.05	)
Preferred dividends		(0.00	)		(0.01	)		(0.01	)		(0.00	)
Basic and diluted loss per share available to common shareholders	$	(0.03	)	$	(0.03	)	$	(0.07	)	$	(0.05	)

The following potential dilutive securities have been excluded from the computations of diluted weighted-average shares outstanding as their effect would have been antidilutive:

Potential Dilutive securities	Three and Six Months Ended June 30,
	2017		2016
Related party lines of credit		5,016,236		1,209,635
Convertible redeemable preferred stock		11,709,151		6,361,818
Stock options		6,171,555		5,582,136
Warrants		175,000		450,000
Total potential dilutive securities		23,071,942		13,603,589