(2) Loss Per Share

The Company calculates basic loss per share by dividing loss attributable to common stockholders by the weighted average common shares outstanding during the period, excluding common stock subject to vesting provisions. In the three and six month periods ended June 30, 2013, the calculation of net loss attributable to common stockholders includes the effect of the deemed dividend to Series A Preferred Stock purchasers (see Note 7).

Diluted loss per share is computed by dividing loss attributable to common stockholders by the weighted average number of common shares outstanding during the period increased to include, if dilutive, the number of additional common shares that would have been outstanding if the potential common shares had been issued. The Company’s potentially dilutive shares include Series A Convertible Preferred Stock, stock options and warrants for common stock.

A reconciliation of the numerator and denominator used in the calculation of basic and diluted loss per share follows:

	Three Months Ended June 30,							Six Months Ended June 30,
(In thousands, except shares and per share data)	2013			2012				2013				2012
Net loss	$	(1,199	)	$	(1,146	)	$		(2,270	)	$		(2,553	)

Less: Series A Preferred Stock deemed dividend	$	(2,026	)	$	—		$		(2,026	)	$		—
Net loss available to common shareholders	$	(3,225	)	$	(1,146	)	$		(4,296	)	$		(2,553	)

Weighted average shares of common stock outstanding		4,946,932			2,030,499				3,998,704				2,030,499
Less: Weighted-average shares of unvested common stock		(2,783	)		(2,783	)			(2,783	)			(2,783	)
Total weighted-average shares used in computing net loss per share attributed to common stockholders		4,944,149			2,027,716				3,995,921				2,027,716
Basic and diluted loss per share	$	(0.65	)	$	(0.57	)	$		(1.08	)	$		(1.26	)

Potentially dilutive securities representing 5.2 million and 606,000 weighted average shares of common stock were excluded for the three months ended June 30, 2013 and 2012, respectively, and potentially dilutive securities representing 3.3 million and 605,000 weighted average shares of common stock were excluded for the six months ended June 30, 2013 and 2012, respectively, because including them would have an anti-dilutive effect on net loss per share.