10. Net Income (Loss) Per Common Share

Generally, basic net income (loss) per share excludes dilution for potentially dilutive securities and is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share reflects the potential dilution under the treasury method that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For periods where the Company has presented a net loss, potentially dilutive securities are excluded from the computation of diluted net loss per share as they would be antidilutive. During 2015, 9,000,000 shares of the Company’s common stock, which were loaned to Bank of America pursuant to the terms of a share lending agreement, were issued and outstanding, with the holder of the borrowed shares having all the rights of a holder of the Company’s common stock. As the share borrower was required to return all borrowed shares to the Company, the borrowed shares were not considered outstanding for the purpose of computing and reporting basic or diluted loss per share during the periods presented for 2015. These shares were returned to the Company in the third quarter of 2015.

The following tables summarize the components of the basic and diluted net income (loss) per common share computations:


	Three Months Ended September 30,					Nine Months Ended September 30,
	2016		2015			2016		2015
Basic EPS:
Net income (loss) (numerator)	$	126,520	$	(31,857	)	$	71,690	$	(91,426	)

Weighted average common shares (denominator)		478,137		405,199			454,188		401,734

Net income (loss) per share	$	0.26	$	(0.08	)	$	0.16	$	(0.23	)

Diluted EPS:
Net income (loss) (numerator)	$	126,520	$	(31,857	)	$	71,690	$	(91,426	)

Weighted average common shares		478,137		405,199			454,188		401,734
Effect of dilutive securities - common shares issuable		4,607		—			178		—

Adjusted weighted average common shares (denominator)		482,744		405,199			454,366		401,734

Net income (loss) per share	$	0.26	$	(0.08	)	$	0.16	$	(0.23	)

Common shares issuable represents incremental shares of common stock which consist of stock options, restricted stock units, warrants, and shares that could be issued upon conversion of the senior convertible notes. For the three and nine months ended September 30, 2016, 78,085,579 and 82,158,388 incremental shares of common stock, respectively, were not included in the calculation of diluted earnings per share because the inclusion of these shares would have been antidilutive. For the three and nine months ended September 30, 2015, 30,416,127 incremental shares of common stock were not included in the calculation of diluted loss per share for both periods because the inclusion of these shares would have been antidilutive.