16 . EARNINGS / (Loss) PER COMMON SHARE

The following table presents a reconciliation of basic and diluted earnings / (loss) per common share for the periods indicated.



EARNINGS / (LOSS) PER COMMON SHARE
(Dollars in Thousands, except share or per share information)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Net income / (loss) attributable to IFMI	$	(104)	$	2,008	$	(9,306)	$	(3,929)
Add/ (deduct): Income / (loss) attributable to non-controlling interest attributable to Operating LLC membership units exchangeable into IFMI shares (1)		(212)		967		(4,461)		(1,916)
Add / (deduct): Adjustment (2)		154		(5)		176		(93)
Net income / (loss) on a fully converted basis	$	(162)	$	2,970	$	(13,591)	$	(5,938)

Weighted average common shares outstanding - Basic		11,875,950		10,849,220		11,628,392		10,683,076
Unrestricted Operating LLC membership units exchangeable into IFMI shares (1)		5,324,090		5,252,002		5,324,090		5,252,002
Dilutive impact of restricted equity instruments		-		75,676		-		-
Weighted average common shares outstanding - Diluted (3)		17,200,040		16,176,898		16,952,482		15,935,078

Net income / (loss) per common share - Basic	$	(0.01)	$	0.19	$	(0.80)	$	(0.37)

Net income / (loss) per common share - Diluted	$	(0.01)	$	0.18	$	(0.80)	$	(0.37)

(1)The Operating LLC membership units not held by IFMI (that is, those held by the non-controlling interest for the nine and three months ended September 30, 2013 and 2012) may be redeemed and exchanged into shares of the Company on a one-to-one basis. The 4,983,557 Operating LLC membership units held by Daniel G. Cohen are redeemable at Mr. Cohen’s option, at any time, for (i) cash in an amount equal to the average of the per share closing prices of the Company’s common stock for the ten consecutive trading days immediately preceding the date the Company receives Mr. Cohen’s redemption notice, or (ii) at the Company’s option, one share of the Company’s common stock, subject, in each case, to appropriate adjustment upon the occurrence of an issuance of additional shares of the Company’ Common Stock as a dividend or other distribution on the Company’s outstanding Common Stock, or a further subdivision or combination of the outstanding shares of the Company’s common stock. The Operating LLC membership units held by other members of the Operating LLC have the same redemption rights as described above. These units are not included in the computation of basic earnings per share. These units enter into the computation of diluted net income / (loss) per common share when the effect is dilutive using the if-converted method.

(2)An adjustment is included for the following: (i) if the Operating LLC membership units had been converted at the beginning of the period, the Company would have incurred a higher income tax expense or realized a higher income tax benefit, as applicable; and (ii) to adjust the non-controlling interest amount to be consistent with the weighted average share calculation.

(3)For the nine months ended September 30, 2013 and 2012, weighted average common shares outstanding excludes a total of 360,559 and 46,288 shares, respectively, representing restricted Operating LLC units, restricted IFMI common stock, and restricted units of IFMI common stock. For the three months ended September 30, 2013, weighted average common shares outstanding excludes a total of 392,010 shares representing restricted Operating LLC units, restricted IFMI common stock, and restricted units of IFMI common stock. For the nine and three months ended September 30, 2013, weighted average common shares outstanding also excludes 59,765 and 179,294 shares, respectively, from the assumed conversion of the 8% Convertibles Notes because the inclusion of the converted shares would be anti-dilutive.