7 — NET (LOSS) EARNINGS PER COMMON SHARE

The computation of basic net (loss) earnings per share is based on the weighted-average number of common shares outstanding during the year. The computation of diluted net (loss) earnings per share assumes the vesting of nonvested stock awards (refer to Note 22 — Stock-Based Compensation), for which the assumed proceeds upon vesting are deemed to be the amount of compensation cost attributable to future services and are not yet recognized using the treasury stock method, to the extent dilutive. Of the 1,110,600 and 0 nonvested shares outstanding at September 30, 2014 and July 9, 2014 for the Successor Company and Predecessor Company, respectively (refer to Note 22 — Stock-Based Compensation), all are anti-dilutive. The Successor Company’s diluted net (loss) earnings per share will also reflect the assumed conversion of the Equity Warrants and MIP Warrants issued by the Successor Company if the impact is dilutive under the treasury stock method. The Predecessor Company’s diluted net (loss) earnings per share will also reflect the assumed conversion of the Company’s convertible debt if the impact is dilutive under the “if converted” method. The impact of the shares convertible under the Predecessor Company’s convertible notes is excluded from the computation of diluted earnings per share when the interest expense per common share obtainable upon conversion is greater than basic earnings per share.

The components of the denominator for the calculation of basic net (loss) earnings per share and diluted net (loss) earnings per share are as follows:

	Successor	Predecessor
	Period from July 9 to September 30, 2014	Period from January 1 to July 9, 2014	Three Months Ended September 30, 2013

Common shares outstanding, basic:
Weighted-average common shares outstanding, basic	60,299,766	43,568,942	43,231,510

Common shares outstanding, diluted:
Weighted-average common shares outstanding, basic	60,299,766	43,568,942	43,231,510

Dilutive effect of warrants	—	—

Dilutive effect of convertible notes	—	—	—

Dilutive effect of restricted stock awards	—	—	—

Weighted-average common shares outstanding, diluted	60,299,766	43,568,942	43,231,510

	Successor	Predecessor
	Period from July 9 to September 30, 2014	Period from January 1 to July 9, 2014	Nine Months Ended September 30, 2013

Common shares outstanding, basic:
Weighted-average common shares outstanding, basic	60,299,766	43,568,942	43,196,895

Common shares outstanding, diluted:
Weighted-average common shares outstanding, basic	60,299,766	43,568,942	43,196,895

Dilutive effect of warrants	—	—	—

Dilutive effect of convertible notes	—	—	—

Dilutive effect of restricted stock awards	—	—	—

Weighted-average common shares outstanding, diluted	60,299,766	43,568,942	43,196,895

The following table sets forth a reconciliation of the net (loss) income attributable to GS&T and the net (loss) income attributable to GS&T for diluted net (loss) earnings per share under the “if-converted” method:

	Successor			Predecessor
	Period from July 9 to September 30, 2014			Period from July 1 to July 9, 2014		Three Months Ended September 30, 2013

Net (loss) income attributable to GS&T	$	(18,290	)	$	892,919	$	(35,034	)

Interest expense related to convertible notes, if dilutive	—			—		—

Net (loss) income attributable to GS&T for the computation of diluted net loss per share	$	(18,290	)	$	892,919	$	(35,034	)

	Successor			Predecessor
	Period from July 9 to September 30, 2014			Period from January 1 to July 9, 2014		Nine Months Ended September 30, 2013

Net (loss) income attributable to GS&T	$	(18,290	)	$	793,291	$	(128,566	)

Interest expense related to convertible notes, if dilutive	—			—		—

Net (loss) income attributable to GS&T for the computation of diluted net loss per share	$	(18,290	)	$	793,291	$	(128,566	)