| Net (Loss) Income Per Common Share | Note 6—Net (Loss) Income Per Common Share
Net (loss) income per common share—basic is calculated by dividing Net (loss) income available to common stockholders by the weighted average number of shares of our common stock, par value $0.001 per share (“Common Stock”), outstanding during the period. Net (loss) income per common share—diluted assumes the conversion of all potentially dilutive securities and is calculated by dividing Net (loss) income available to common stockholders by the sum of the weighted average number of shares of Common Stock outstanding plus potentially dilutive securities. Net (loss) income per common share—diluted considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential shares of Common Stock would have an anti-dilutive effect. A reconciliation of Net (loss) income per common share for the three and nine months ended September 30, 2015 and 2014 is as follows:
Three months ended September 30,
Nine months ended September 30,
2015
2014
2015
2014
Net (loss) income
$
)
$
)
$
)
$
Accretion of Series A Convertible Redeemable Preferred Stock
)
)
)
)
Paid-in-kind dividends on Series A Convertible Redeemable Preferred Stock
—
)
)
)
Cash dividends paid on Series A Convertible Redeemable Preferred Stock
)
)
)
)
Net (loss) income available to common stockholders —basic and diluted
$
)
$
)
$
)
$
Net (loss) income per common share—basic and diluted:
Net loss per common share from continuing operations
$
)
$
)
$
)
$
)
Net income per common share from discontinued operations
—
—
Net (loss) income per common share—basic and diluted
$
)
$
)
$
)
$
Weighted average number of common shares:
Basic and diluted
Net loss per common share—diluted for the three months ended September 30, 2015 excluded the effect of 7,217,015 shares of Series A Convertible Redeemable Preferred Stock, par value $0.001 per share (“Preferred Stock”), (55,515,500 in dilutive shares, as converted, which assumes conversion on the first day of the period) because we reported Loss from continuing operations which caused the options, restricted shares and the Preferred Stock to be anti-dilutive. Additionally, in computing the dilutive effect of convertible securities, Net loss available to common stockholders is also adjusted to add back any convertible preferred dividends and accretion unless the shares of Preferred Stock are anti-dilutive. As such, there was no add back to Net loss available to common stockholders for the three months ended September 30, 2015 for accretion of and dividends paid for Preferred Stock of $1,107,407 and $1,732,083, respectively, in computing Net loss per common share—diluted as the shares of Preferred Stock were anti-dilutive.
Net loss per common share—diluted for the nine months ended September 30, 2015 excluded the effect of 7,217,015 shares of Preferred Stock (55,515,500 in dilutive shares, as converted, which assumes conversion on the first day of the period) because we reported Loss from continuing operations which caused the options, restricted shares and the Preferred Stock to be anti-dilutive. Additionally, in computing the dilutive effect of convertible securities, Net loss available to common stockholders is also adjusted to add back any convertible preferred dividends and accretion unless the shares of Preferred Stock are anti-dilutive. As such, there was no add back to Net loss available to common stockholders for the nine months ended September 30, 2015 for accretion of and dividends paid for Preferred Stock of $2,999,449 and $2,874,626, respectively, in computing Net loss per common share—diluted as the shares of Preferred Stock were anti-dilutive.
Net loss per common share—diluted for the three months ended September 30, 2014 excluded the effect of 6,383,526 weighted average shares of Preferred Stock (49,104,045 in dilutive shares, as converted, which assumes conversion on the later of the first day of the period or date of issuance) because we reported Loss from continuing operations which caused the Preferred Stock to be anti-dilutive. Additionally, in computing the dilutive effect of convertible securities, Net income available to common stockholders is also adjusted to add back any convertible preferred dividends and accretion unless the shares of Preferred Stock are anti-dilutive. As such, there was no add back to Net income available to common stockholders for the three months ended September 30, 2014 for accretion of and dividends paid for Preferred Stock of $772,910 and $649,897, respectively, in computing Net loss per common share—diluted as the shares of Preferred Stock were anti-dilutive.
Net income per common share—diluted for the nine months ended September 30, 2014 excluded the effect of 6,193,507 weighted average shares of Preferred Stock (47,642,363 in dilutive shares, as converted, which assumes conversion on the later of the first day of the period or date of issuance), because we reported Loss from continuing operations which caused the options, restricted shares and the Preferred Stock to be anti-dilutive. Additionally, in computing the dilutive effect of convertible securities, Net income available to common stockholders is also adjusted to add back any convertible preferred dividends and accretion unless the shares of Preferred Stock are anti-dilutive. As such, there was no add back to Net income available to common stockholders for the nine months ended September 30, 2014 for accretion of and dividends paid for Preferred Stock of $2,122,819 and $1,802,687, respectively, in computing Net income per common share—diluted as the shares of Preferred Stock were anti-dilutive. |
