Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Net (Loss) per Share

v3.8.0.1
Net (Loss) per Share
12 Months Ended
Dec. 31, 2017
Earnings Per Share [Abstract]  
Net (Loss) per Share

Note J – Net (Loss) per Share

The following table provides the computation of basic and diluted net (loss) per share for the years ended December 31, 2017, 2016 and 2015 (in thousands, except share and per share amounts):

 

 

 

Year Ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

Net (loss)

 

$

(846

)

 

$

(5,723

)

 

$

(2,535

)

Deemed dividends on preferred stock

 

 

3,645

 

 

 

18,011

 

 

 

40

 

Amortization of preferred stock beneficial conversion feature

 

 

6,902

 

 

 

6,663

 

 

 

82

 

Net (loss) available to common stockholders

 

$

(11,393

)

 

$

(30,397

)

 

$

(2,657

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

 

79,426

 

 

 

77,542

 

 

 

60,526

 

Effect of potentially dilutive securities

 

 

-

 

 

 

-

 

 

 

-

 

Diluted weighted average shares outstanding

 

 

79,426

 

 

 

77,542

 

 

 

60,526

 

Basic net (loss) per share attributable to common stockholders

 

$

(0.14

)

 

$

(0.39

)

 

$

(0.04

)

Diluted net (loss) per share attributable to common stockholders

 

$

(0.14

)

 

$

(0.39

)

 

$

(0.04

)

 

We have adopted the two class method in calculating earnings per share as we have determined our preferred shares to be participating securities.  Under this method, we have included in weighted average shares outstanding all of our preferred shares as we have assumed conversion to common shares.  We have not allocated the net loss to our participating shareholders as they do not have a contractual obligation to share in losses.

 

For the years ended December 31, 2017, 2016 and 2015, 1.6 million, 1.7 million and 103,000 options were excluded from the calculation of diluted earnings per share because the effect of including these potential shares was anti-dilutive. The impact of contingently convertible Series A Preferred Stock was excluded from the calculation of diluted earnings per share because the effect of including these potential shares was anti-dilutive.