Aspira Women's Health (AWH) 10-Q 12 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Entity Registrant Name	VERMILLION, INC.
Entity Central Index Key	926617
Current Fiscal Year End Date	-19
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		43,115,790

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$17,241	$22,965
Accounts receivable	160	167
Prepaid expenses and other current assets	684	526
Total current assets	18,085	23,658
Property and equipment, net	492	508
Other assets	98	8
Total assets	18,675	24,174
Current liabilities:
Accounts payable	1,295	1,123
Accrued liabilities	2,190	2,201
Short-term debt		1,106
Deferred revenue		489
Total liabilities	3,485	4,919
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding at March 31, 2015 and December 31, 2014, respectively
Common stock, $0.001 par value, 150,000,000 shares authorized at March 31, 2015 and December 31, 2014; 43,115,790 shares issued and outstanding at March 31, 2015 and December 31, 2014	43	43
Additional paid-in capital	370,757	370,685
Accumulated deficit	-355,610	-351,473
Total stockholders' equity	15,190	19,255
Total liabilities and stockholders' equity	$18,675	$24,174

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	43,115,790	43,115,790
Common stock, shares outstanding	43,115,790	43,115,790

Consolidated_Statements_Of_Ope

Consolidated Statements Of Operations (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015		Mar. 31, 2014
Revenue:
Product	$635		$191
License	316		114
Total revenue	951		305
Cost of revenue:
Product	491		55
Gross profit	460		250
Operating expenses:
Research and development	1,105	[1]	1,153	[1]
Sales and marketing	2,217	[2]	2,104	[2]
General and administrative	1,400	[3]	988	[3]
Total operating expenses	4,722		4,245
Loss from operations	-4,262		-3,995
Interest income	9		14
Other income (expense), net	116		-6
Net loss	($4,137)		($3,987)
Net loss per share - basic and diluted	($0.10)		($0.11)
Weighted average common shares used to compute basic and diluted net loss per common share	43,115,790		35,827,886
[1]	Non-cash stock-based compensation expense included in operating expenses: Research and development $31 and $40
[2]	Non-cash stock-based compensation expense included in operating expenses: Sales and marketing $37 and $25
[3]	Non-cash stock-based compensation expense included in operating expenses: General and administrative $97 and $69

Consolidated_Statements_Of_Ope1

Consolidated Statements Of Operations (Parenthetical) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Stock-based compensation expense	$165	$123
Research And Development [Member]
Stock-based compensation expense	31	40
Sales And Marketing [Member]
Stock-based compensation expense	37	25
General And Administrative [Member]
Stock-based compensation expense	$97	$69

Consolidated_Statements_Of_Cas

Consolidated Statements Of Cash Flows (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net loss	($4,137,000)	($3,987,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Gain on extinguishment of debt	-78,000
Non-cash license revenue	-316,000	-114,000
Depreciation and amortization	53,000	27,000
Stock-based compensation expense	165,000	123,000
Warrants issued for services		11,000
Changes in operating assets and liabilities:
Accounts receivable	7,000	204,000
Prepaid expenses and other assets	-248,000	-356,000
Accounts payable, accrued liabilities and other liabilities	202,000	318,000
Deferred revenue	-173,000	269,000
Net cash used in operating activities	-4,525,000	-3,505,000
Cash flows from investing activities:
Purchase of property and equipment	-37,000	-19,000
Net cash used in investing activities	-37,000	-19,000
Cash flows from financing activities:
Issuance costs from sale of common stock and warrants	-93,000
Repayment of short-term debt	-1,069,000
Proceeds from issuance of common stock from exercise of stock options		11,000
Net cash (used in)/provided by financing activities	-1,162,000	11,000
Net decrease in cash and cash equivalents	-5,724,000	-3,513,000
Cash and cash equivalents, beginning of period	22,965,000	29,504,000
Cash and cash equivalents, end of period	$17,241,000	$25,991,000

Organization_Basis_Of_Presenta

Organization, Basis Of Presentation And Significant Accounting And Reporting Policies	3 Months Ended
	Mar. 31, 2015
Organization, Basis Of Presentation And Significant Accounting And Reporting Policies [Abstract]
Organization, Basis Of Presentation And Significant Accounting And Reporting Policies	1.   ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING AND REPORTING POLICIES
	Organization
	Vermillion, Inc. (“Vermillion”; Vermillion and its wholly-owned subsidiaries are collectively referred to as the “Company”) is incorporated in the state of Delaware, and is engaged in the business of developing and commercializing diagnostic tests for gynecologic disease.  In March 2010, the Company commercially launched OVA1™ ovarian tumor triage test (“OVA1”). The Company distributes OVA1 through Quest Diagnostics Incorporated (“Quest Diagnostics”) (see Note 2) and through its wholly-owned Clinical Laboratory Improvement Amendments of 1988 (“CLIA”) certified clinical laboratory, ASPiRA LABS, Inc. (“ASPiRA LABS”), which opened on June 23, 2014.
	Liquidity
	The Company expects cash for OVA tests to be its only material, recurring source of cash in 2015. There can be no assurance that the Company will achieve or sustain profitability or positive cash flow from operations. In addition, there is no assurance of our ability to generate substantial revenues and cash flows from ASPiRA’s operations.
	Our management believes that the current working capital position will be sufficient to meet the Company’s working capital needs for at least the next 12 months. However, our management also believes that the successful achievement of our business objectives will require additional financing. We expect to raise capital through a variety of sources, which may include the public equity market, private equity financing, collaborative arrangements, licensing arrangements, and/or public or private debt. If the Company is unable to obtain additional capital over the next year, it may be required to delay, reduce the scope of or eliminate key research and development activities, including a planned registry study, which would eliminate or delay our plans to launch future products. This could have a material adverse effect on the Company’s business, results of operations and financial condition.
	Any additional equity financing may be dilutive to stockholders, and debt financing, if available, may involve restrictive covenants and dilution to stockholders. If the Company obtains additional funds through arrangements with collaborators or strategic partners, it may be required to relinquish its rights to certain technologies or products that it might otherwise seek to retain. Additional funding may not be available when needed or on terms acceptable to the Company.
	Basis of Presentation
	The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management of the Company, all adjustments, consisting of normal recurring adjustments necessary for the fair statement of results for the periods presented, have been included. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year or any other interim period.
	The unaudited consolidated financial statements and related disclosures have been prepared with the presumption that users of the interim unaudited consolidated financial statements have read or have access to the audited consolidated financial statements for the preceding fiscal year. The consolidated balance sheet at December 31, 2014 included in this report has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by GAAP. Accordingly, these unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2014, included in Vermillion’s Annual Report on Form 10-K which was filed with the Securities and Exchange Commission on March 31, 2015.
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated results.
	Certain reclassifications of prior year amounts have been made to conform to current year presentation.
	Significant Accounting and Reporting Policies
	The Company has made no significant changes in its critical accounting policies and estimates from those disclosed in Vermillion’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014.

Agreements_with_Quest_Diagnost

Agreements with Quest Diagnostics Incorporated	3 Months Ended
	Mar. 31, 2015
Agreements With Quest Diagnostics Incorporated [Abstract]
Agreements With Quest Diagnostics Incorporated	2.   AGREEMENTS WITH QUEST DIAGNOSTICS INCORPORATED
	Quest Diagnostics is a holder of the Company’s common stock. In July 2005, the Company entered into a Strategic Alliance Agreement (as amended, the “Strategic Alliance Agreement”) with Quest Diagnostics to develop and commercialize diagnostic tests, including OVA1, from the Company’s product pipeline.  In connection with the Strategic Alliance Agreement, the Company entered into a credit agreement with Quest Diagnostics, pursuant to which Quest Diagnostics provided the Company with a $10,000,000 secured line of credit to be used to pay for certain costs and expenses related to activities under the Strategic Alliance Agreement. This line of credit was collateralized by certain of the Company’s intellectual property assets. The credit agreement provided for the forgiveness of portions of the amounts borrowed under the secured line of credit upon the achievement of certain milestones related to the development, regulatory approval and commercialization of certain diagnostic tests. Through December 31, 2014, the entire loan was either repaid or forgiven except for $1,106,000 which was in dispute. The dispute regarding the balance of the loan was resolved on March 11, 2015 for a payment to Quest Diagnostics totaling $1,069,000. As a result of this settlement, the Company recognized one-time items during the three months ended March 31, 2015, including product revenue of $163,000, license revenue of $202,000, gain on extinguishment of debt of $78,000 and reversal of other liabilities totaling $37,000.
	Unrelated to the debt dispute described above, in August 2013, the Company sent Quest Diagnostics a notice of termination of the Strategic Alliance Agreement. Notwithstanding the termination, the Company agreed that Quest Diagnostics could continue to make OVA1 available to healthcare providers on the same financial terms following the termination while negotiating in good faith towards an alternative business structure. Quest Diagnostics disputed the effectiveness of the termination. Prior to the termination, Quest Diagnostics had the non-exclusive right to commercialize OVA1 on a worldwide basis, with exclusive commercialization rights in the clinical reference laboratory marketplace in the United States, India, Mexico, and the United Kingdom through September 2014, with the right to extend the exclusivity period for one additional year. On March 11, 2015, we reached a settlement agreement with Quest Diagnostics that terminated all disputes related to our prior strategic alliance and loan agreements.  We also entered into a new commercial agreement with Quest Diagnostics.  Pursuant to this agreement, as amended on April 10, 2015 (the “New Quest Agreement”), Vermillion’s wholly-owned subsidiary, ASPiRA LABS, will begin to offer OVA1 testing to Quest Diagnostics customers. We expect Quest Diagnostics to transfer all OVA1 U.S. testing services to ASPiRA LABS, starting with 49 states this year, while continuing to provide blood draw and logistics support by transporting specimens from its clients to ASPiRA LABS for testing through March 11, 2017. Pursuant to the New Quest Agreement, Quest Diagnostics will also continue to offer OVA1 services through its own labs in the remaining state, until ASPiRA LABS has obtained the state approvals required to provide those services.  Quest will receive a fee for collection and logistic support services it provides.  Per the terms of the New Quest Agreement, we will not offer to existing or future Quest Diagnostics customers CA 125-II or other tests that Quest Diagnostics offers.
	Accounts receivable from Quest Diagnostics under the Strategic Alliance Agreement totaled $160,000 and $167,000 at March 31, 2015 and December 31, 2014, respectively.

Commitments_And_Contingencies

Commitments And Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments And Contingencies [Abstract]
Commitments And Contingencies	3.   COMMITMENT AND CONTINGENCIES
	The Company leases facilities to support its business of discovering, developing and commercializing diagnostic tests in the fields of gynecologic disease. Vermillion leases its principal facility and CLIA laboratory located near Austin, Texas. The leases include an annual base rent of $130,000 and annual estimated common area charges, taxes and insurance of $62,000 and expire at various times prior to May 31, 2016.
	In April 2015, the Company agreed to purchase two laboratory instruments for a total initial payment of $250,000 and ongoing payments of approximately $7,000 per month for 36 months after delivery. The agreement also requires minimum annual purchases of reagents from the manufacturer of the equipment.

Stockholders_Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2015
Stockholders' Equity [Abstract]
Stockholders' Equity	4.   STOCKHOLDERS’ EQUITY
	2010 Stock Incentive Plan
	The Company’s employees, directors, and consultants are eligible to receive awards under the Vermillion, Inc. Amended and Restated 2010 Stock Incentive Plan (the “2010 Plan”). The 2010 Plan permits the granting of a variety of awards, including stock options, share appreciation rights, restricted shares, restricted share units, unrestricted shares, deferred share units, performance and cash-settled awards, and dividend equivalent rights. The 2010 Plan provides for issuance of up to 3,622,983 shares of common stock, par value $0.001 per share under the 2010 Plan, subject to adjustment as provided in the 2010 Plan.
	Employee Stock-Based Compensation
	During the three months ended March 31, 2015, the Company granted 400,000 stock options with an exercise price of $1.95 per share to the Company’s President and Chief Executive Officer.  These stock options vest in 48 equal monthly installments from the date of the grant. The Company also granted 275,000 stock options with an exercise price of $2.08 to certain Vermillion officers and 45,000 stock options with an exercise price of $1.77 to certain Vermillion employees. These stock options vest 25% on the first anniversary of the grant date, and the remaining stock options vest ratably over the following 36-month period.
	On April 1,  2015, the Company granted 150,000 stock options with an exercise price of $1.74 per share to a Vermillion officer. These stock options vest 25% on the first anniversary of the grant date, and the remaining stock options vest ratably over the following 36-month period. The April 1, 2015 grant is subject to stockholder approval of an increase of 4,500,000 in the number of shares authorized to be granted under the 2010 Plan. Pursuant to Accounting Standards Codification 718, “Compensation – Stock Compensation,” there is no stock-based compensation expense recognized for this stock option grant until approval by the Company’s stockholders of an increase in the number of shares authorized under the 2010 Plan.
	The allocation of employee stock-based compensation expense by functional area for the three months ended March 31, 2015 and 2014 was as follows:
		Three Months Ended March 31,
	(in thousands)	2015		2014
	Research and development	$	31	$	40
	Sales and marketing		37		25
	General and administrative		97		58
	Total	$	165	$	123

Loss_Per_Share

Loss Per Share	3 Months Ended
	Mar. 31, 2015
Loss Per Share [Abstract]
Loss Per Share	5.   LOSS PER SHARE
	The Company calculates basic loss per share using the weighted average number of common shares outstanding during the period. Because the Company is in a net loss position, diluted loss per share is calculated using the weighted average number of common shares outstanding and excludes the effects of 7,040,587 and 2,616,490 potential common shares as of March 31, 2015 and 2014, respectively, that are anti-dilutive. Potential common shares include incremental shares of common stock issuable upon the exercise of outstanding warrants and stock options.

Recovered_Sheet1

Organization, Basis of Presentation And Significant Accounting And Reporting Policies (Policies)	3 Months Ended
	Mar. 31, 2015
Organization, Basis Of Presentation And Significant Accounting And Reporting Policies [Abstract]
Organization	Organization
	Vermillion, Inc. (“Vermillion”; Vermillion and its wholly-owned subsidiaries are collectively referred to as the “Company”) is incorporated in the state of Delaware, and is engaged in the business of developing and commercializing diagnostic tests for gynecologic disease.  In March 2010, the Company commercially launched OVA1™ ovarian tumor triage test (“OVA1”). The Company distributes OVA1 through Quest Diagnostics Incorporated (“Quest Diagnostics”) (see Note 2) and through its wholly-owned Clinical Laboratory Improvement Amendments of 1988 (“CLIA”) certified clinical laboratory, ASPiRA LABS, Inc. (“ASPiRA LABS”), which opened on June 23, 2014.
Liquidity	Liquidity
	The Company expects cash for OVA tests to be its only material, recurring source of cash in 2015. There can be no assurance that the Company will achieve or sustain profitability or positive cash flow from operations. In addition, there is no assurance of our ability to generate substantial revenues and cash flows from ASPiRA’s operations.
	Our management believes that the current working capital position will be sufficient to meet the Company’s working capital needs for at least the next 12 months. However, our management also believes that the successful achievement of our business objectives will require additional financing. We expect to raise capital through a variety of sources, which may include the public equity market, private equity financing, collaborative arrangements, licensing arrangements, and/or public or private debt. If the Company is unable to obtain additional capital over the next year, it may be required to delay, reduce the scope of or eliminate key research and development activities, including a planned registry study, which would eliminate or delay our plans to launch future products. This could have a material adverse effect on the Company’s business, results of operations and financial condition.
	Any additional equity financing may be dilutive to stockholders, and debt financing, if available, may involve restrictive covenants and dilution to stockholders. If the Company obtains additional funds through arrangements with collaborators or strategic partners, it may be required to relinquish its rights to certain technologies or products that it might otherwise seek to retain. Additional funding may not be available when needed or on terms acceptable to the Company.
Basis of Presentation	Basis of Presentation
	The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management of the Company, all adjustments, consisting of normal recurring adjustments necessary for the fair statement of results for the periods presented, have been included. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year or any other interim period.
	The unaudited consolidated financial statements and related disclosures have been prepared with the presumption that users of the interim unaudited consolidated financial statements have read or have access to the audited consolidated financial statements for the preceding fiscal year. The consolidated balance sheet at December 31, 2014 included in this report has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by GAAP. Accordingly, these unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2014, included in Vermillion’s Annual Report on Form 10-K which was filed with the Securities and Exchange Commission on March 31, 2015.
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated results.
	Certain reclassifications of prior year amounts have been made to conform to current year presentation.
Significant Accounting and Reporting Policies	Significant Accounting and Reporting Policies
	The Company has made no significant changes in its critical accounting policies and estimates from those disclosed in Vermillion’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014.

Stockholders_Equity_Tables

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2015
Stockholders' Equity [Abstract]
Allocation of Stock-Based Compensation Expense by Functional Area
		Three Months Ended March 31,
	(in thousands)	2015		2014
	Research and development	$	31	$	40
	Sales and marketing		37		25
	General and administrative		97		58
	Total	$	165	$	123

Recovered_Sheet2

Agreements With Quest Diagnostics Incorporated (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Jul. 31, 2005
Line of Credit Facility [Line Items]
Secured line of credit, liability			$1,106,000
Repayment of short-term debt	1,069,000
Product	635,000	191,000
License	316,000	114,000
Gain on extinguishment of debt	78,000
Quest Diagnostics [Member]
Line of Credit Facility [Line Items]
Quest Diagnostics provided secured line of credit				10,000,000
Product	163,000
License	202,000
Decrease to other current liabilities	37,000
Accounts receivable from related party	$160,000		$167,000

Commitments_And_Contingencies_

Commitments And Contingencies (Details) (USD $)	3 Months Ended	1 Months Ended
	Mar. 31, 2015	Apr. 30, 2015
		item
Other General and Administrative Expense	$62,000
Lease expiration date	31-May-16
Operating Leases, Rent Expense	130,000
Subsequent Event [Member]
Initial payment of laboratory equipment		250,000
Monthly payment for acquisition for equipment		$7,000
Number of payments for purchase production of assets		36 months
Number of purchased laboratory instruments		2

Stockholders_Equity_Narrative_

Stockholders' Equity (Narrative) (Details) (USD $)	0 Months Ended	3 Months Ended
	Apr. 01, 2015	Mar. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, par value		$0.00	$0.00
Officer [Member] | Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted, average exercise price	1.74
2010 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant		3,622,983
2010 Stock Incentive Plan [Member] | Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares authorized	4,500,000
2010 Stock Incentive Plan [Member] | President and Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted		400,000
Stock options granted, average exercise price		$1.95
Stock options vesting period		48 months
2010 Stock Incentive Plan [Member] | Vermillion Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted		275,000
Stock options granted, average exercise price		$2.08
2010 Stock Incentive Plan [Member] | Certain Vermillion Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted		45,000
Stock options granted, average exercise price		$1.77
2010 Stock Incentive Plan [Member] | Vermillion Officers And Certain Vermillion Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		25.00%
Stock options vesting period after first year		36 months
2010 Stock Incentive Plan [Member] | Officer [Member] | Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	25.00%
Stock options granted	150,000
Stock options vesting period after first year	36 months

Stockholders_Equity_Allocation

Stockholders' Equity (Allocation of Employee Stock-Based Compensation Expense By Functional Area) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$165	$123
Research And Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	31	40
Sales And Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	37	25
General And Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$97	$58

Loss_Per_Share_Details

Loss Per Share (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Loss Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share	7,040,587	2,616,490