Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

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Net Income (Loss) Per Share
 9 Months Ended
Sep. 30, 2014
Net Income (Loss) Per Share [Abstract]  
Net Income (Loss) Per Share

12. Net Income (Loss) Per Share

 

 

Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares outstanding for the period. Diluted net income (loss) per share is calculated by adjusting the numerator and denominator of the basic net income (loss) per share to gives effect to all potentially dilutive common shares. The potentially dilutive securities include stock options and warrants. Diluted net income (loss) per share also gives effect to potential adjustments to the numerator for changes resulting from the revaluation of warrants to fair value for the period, even if the Company is in a net loss position, if the effect would result in more dilution.

 

The following table is a reconciliation of the numerators and denominators used in the calculation of basic and diluted net loss per share computations for the three and nine months ended September 30, 2014 and 2013;

  

   

Three months ended

    

Nine months ended

  
   

September 30,

    

September 30,

  
    2014     2013     2014     2013  
             
Numerator:                                
Net income (loss) used to compute net income (loss) per share                                
Basic   $ 12,024,361     $ (1,893,924 )   $ (13,614,016 )   $ (9,090,634 )
Less gain on change in fair value of warrant liability     (15,773,100 )     –       –       –  
Diluted, as adjusted   $ (3,748,739 )   $ (1,893,924 )   $ (13,614,016 )   $ (9,090,634 )
                                 
Denominator:                                
Weighted-average common shares outstanding used in computing basic net income (loss) per share                                
Basic     78,513,144       21,085,283       74,943,169       20,937,488  
Dilutive effect of warrants     750,653       –       –       –  
Dilutive effect of stock options     4,072,574       –       –       –  
Diluted, as adjusted     83,336,371       21,085,283       74,943,169       20,937,488  
                                 
Net income (loss) per share, basic   $ 0.15     $ (0.09 )   $ (0.18 )   $ (0.43 )
Net loss per share, diluted   $ (0.04 )   $ (0.09 )   $ (0.18 )   $ (0.43 )

 

 

The following potential common shares and warrants outstanding were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive:

  

   

Three months ended

    

Nine months ended

  
   

September 30,

    

September 30,

  
    2014     2013     2014     2013  
                                 
Options to purchase common stock     –       7,335,135       3,724,529       7,335,135  
Warrants     –       –       8,407,084       –  
Total common stock equivalents     –       7,335,135       12,131,613       7,335,135  

  

 

A total of 5,280,368 shares of common stock held by pre-Merger stockholders of Holdings as described in Note 3, The Merger, Offering and Other Related Transactions have been retroactively reflected as outstanding for the three and nine months ended September 30, 2014 and 2013 for purposes of determining the basic and diluted net loss per share in the accompanying Condensed Consolidated Statements of Operations.