Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Net Income (Loss) per Share

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Net Income (Loss) per Share
12 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]  
Net Income (Loss) per Share
Note K – Net Income (Loss) per Share
The following table provides the computation of basic and diluted net income (loss) per share for the years ended December 31, 2018, 2017 and 2016 (in thousands, except share and per share amounts):
 
  Year Ended December 31,
  2018 2017
(as adjusted)
2016
(as adjusted)
Net income (loss) $ 2,640  $ (396) $ (6,142)
Deemed dividends on preferred stock 10,198  3,645  18,011 
Gain on redemption of preferred stock (9,075) —  — 
Amortization of preferred stock beneficial conversion feature (4,571) 6,902  6,663 
Net income (loss) available to common stockholders $ 6,088  $ (10,943) $ (30,816)
Basic weighted average common shares outstanding 85,618  79,426  77,542 
Effect of potentially dilutive securities 5,950  —  — 
Diluted weighted average shares outstanding 91,568  79,426  77,542 
Basic net income (loss) per share attributable to common stockholders $ 0.07  $ (0.14) $ (0.40)
Diluted net income (loss) per share attributable to common stockholders $ 0.07  $ (0.14) $ (0.40)

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.  In periods of net loss, 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, 2018, 2017 and 2016, 0.3, 1.6 and 1.7 million options were excluded from the calculation of diluted earnings per share because the effect of including these potential shares was anti-dilutive. For periods in which the impact of contingently convertible Series A Preferred Stock was anti-dilutive, these shares were excluded from the calculation of diluted earnings per share.