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Basic and Diluted Net Income (Loss) Per Common Share
 6 Months Ended
Jun. 30, 2014
Basic and Diluted Net Income (Loss) Per Common Share [Abstract]  
Basic and Diluted Net Income (Loss) Per Common Share
(6)           Basic and Diluted Net Income (Loss) Per Common Share

Basic net income or loss per share is based upon the weighted average number of common shares outstanding during the period. Diluted net income or loss per share is based upon the weighted average number of common shares outstanding during the period, plus the effect of additional weighted average common equivalent shares outstanding during the period when the effect of adding such shares is dilutive. Common equivalent shares result from the assumed exercise of outstanding stock options and warrants (the proceeds of which are then assumed to have been used to repurchase outstanding stock using the treasury stock method). In addition, the assumed proceeds under the treasury stock method include the average unrecognized compensation expense of stock options that are in-the-money. This results in the “assumed” buyback of additional shares, thereby reducing the dilutive impact of stock options and warrants. Common equivalent shares have not been included in the net loss per share calculations for three and six months ended June 30, 2014, because the effect of including them would have been anti-dilutive.

Basic and diluted net income (loss) per share were determined as follows:


(in thousands, except share and per share amounts)
 
Three months ended June 30,
  
Six months ended June 30,
 
   
2014
  
2013
  
2014
  
2013
 
              
Net income (loss)
 $(13,233) $867  $(14,817) $4,221 
Weighted average shares outstanding
  26,191,311   25,111,713   26,034,995   24,957,183 
Basic net income (loss) per common share
 $(0.51) $0.03  $(0.57) $0.17 
                  
Net income (loss)
 $(13,233) $867  $(14,817) $4,221 
Weighted average shares outstanding
  26,191,311   25,111,713   26,034,995   24,957,183 
Effect of dilutive options and warrants
  -   357,516   -   357,516 
Weighted average shares outstanding assuming dilution
  26,191,311   25,469,229   26,034,995   25,314,699 
Diluted net income (loss) per common share
 $(0.51) $0.03  $(0.57) $0.17 
                  

We did not include the following securities in the table below in the computation of diluted net income (loss) per common share because the securities were anti-dilutive during the periods presented:

   
Three months ended June 30,
  
Six months ended June 30,
 
   
2014
  
2013
  
2014
  
2013
 
              
Warrants
  28,885,570   35,683,943   28,885,570   35,683,943 
Stock options
  11,941,700   1,967,284   11,941,700   1,967,284 
Preferred stock Series A
  57,867,234   58,267,234   57,867,234   58,267,234 
Preferred stock Series B
  20,000,000   20,000,000   20,000,000   20,000,000 
Total
  118,694,504   115,918,461   118,694,504   115,918,461