XML 23 R12.htm IDEA: XBRL DOCUMENT

EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

NOTE 6. EARNINGS PER SHARE

We compute basic earnings per share ("basic EPS") by dividing the net income or loss by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share ("diluted EPS") gives effect to all dilutive potential shares outstanding. The following table provides the computation of basic and diluted earnings per share for the three month periods ending March 31, 2016 and 2015:

		Three Months Ended
		March 31,
(in thousands, except per share data)		2016				2015

Numerator:
Net income (loss) available to common shareholders		$	(1,944	)		$	12,858
Effect of dilutive securities
Derivative liability - warrants		$	-			$	(1,444	)
Accretion on convertible preferred stock			-				222
Numerator for diluted income (loss) per common share		$	(1,944	)		$	11,636

Denominator:
Weighted average shares used to compute basic income (loss) per common share			27,051				18,615
Effect of dilutive securities:
Derivative liability - warrants			-				326
Convertible preferred stock			-				1,116
Stock options			-				413
Denominator for diluted income (loss) per common share			27,051				20,470

Basic income (loss) per common share		$	(0.07	)		$	0.69
Diluted income (loss) per common share		$	(0.07	)		$	0.57

For the quarter ended March 31, 2016, the conversion of Series B Preferred Stock into 3,951,278 shares of common stock was excluded from the computation of diluted earnings per share as the effect is anti-dilutive.

For the three months ended March 31, 2016, approximately $87,000 of the gain on the fair market valuation of the derivative liability was excluded in the computation of diluted earnings per share as the effect is anti-dilutive.