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EARNINGS PER SHARE
 12 Months Ended
Dec. 31, 2016
Earnings Per Share [Abstract]  
EARNINGS PER SHARE
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.
 
Year Ended December 31,
(in thousands, except per share data)
2016
 
2015
 
2014
Numerator:
 
 
 
 
 
Net (loss) income available to common shareholders
$
(3,950
)
 
$
8,364

 
$
(18,214
)
Effect of dilutive securities:
 
 
 
 
 
Derivative liability - warrants
(64
)
 
(1,799
)
 
—

Accretion on convertible preferred stock
—

 
222

 
—

Numerator for dilutive (loss) income per common share
(4,014
)
 
6,787

 
(18,214
)
 
 
 
 
 
 
Denominator:
 
 
 
 
 
Weighted average shares used to compute basic (loss) income per common share
27,433

 
24,333

 
17,756

Effect of dilutive securities:
 
 
 
 
 
Derivative liability - warrants
16

 
28

 
—

Convertible preferred stock
—

 
3,137

 
—

Stock options
—

 
249

 
—

Denominator for dilutive (loss) income per common share
27,449

 
27,747

 
17,756

 
 
 
 
 
 
Basic (loss) income per common share
$
(0.14
)
 
$
0.34

 
$
(1.03
)
Diluted (loss) income per common share
$
(0.15
)
 
$
0.24

 
$
(1.03
)


For the year ended December 31, 2016, warrants to purchase approximately 16,000 shares of common stock and approximately $64,000 of the gain on the fair market valuation of the derivative liabilities were included in the computation of diluted earnings per share because their effects were dilutive.

For the year ended December 31, 2015, warrants to purchase approximately 28,000 shares of common stock and approximately $1.8 million of the gain on the fair market valuation of the derivative liabilities, options to purchase approximately 249,000 shares of common stock and the conversion of Series B Preferred Stock into approximately 3,137,000 shares of common stock were included in the computation of diluted earnings per share because their effects were dilutive.

For the year ended December 31, 2014, options and warrants to purchase approximately 6,500,000 shares of common stock were excluded in the computation of diluted earnings per share because their effects were anti-dilutive.