Quarterly report pursuant to Section 13 or 15(d)

Note 12 - Net Loss per Share

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Note 12 - Net Loss per Share
6 Months Ended
Jun. 30, 2017
Earnings Per Share [Abstract]  
Net Loss per Share

Basic net loss per share is computed by dividing net loss for the period by the weighted average number of shares of common stock outstanding during each period. There was no dilutive effect for the outstanding potentially dilutive securities for the three and six months ended June 30, 2017 and 2016, respectively, as the Company reported a net loss for all periods.

 

The following table sets forth the computation of the Company’s basic and diluted net loss per share for the periods presented (in thousands, except share and per share data):

 

   

For the Three Months

Ended June 30,

   

For the Six Months

Ended June 30,

 
    2017     2016     2017     2016  
Net loss   $ (3,149 )   $ (4,196 )   $ (6,298 )   $ (10,801 )
Weighted average common shares used in computing net loss per share, basic and diluted     13,845,301       13,874,209       13,809,603       13,855,754  
Net loss per share, basic and diluted   $ (0.23 )   $ (0.30 )   $ (0.46 )   $ (0.78 )

 

Diluted net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. The Company uses the treasury stock method to determine whether there is a dilutive effect of outstanding potentially dilutive securities, and the if-converted method to assess the dilutive effect of the convertible notes.

 

There was no dilutive effect for the outstanding awards for the three and six months ended June 30, 2017 and 2016, respectively, as the Company reported a net loss for all periods. However, if the Company had net income for the three and six months ended June 30, 2017, the potentially dilutive securities included in the earnings per share computation would have been 8,978,295 and 8,952,914, respectively. If the Company had net income for the three and six months ended June 30, 2016, the potentially dilutive securities included in the earnings per share computation would have been 2,608,695 for both periods.

 

Total outstanding potentially dilutive securities were comprised of the following:

 

    As of June 30,  
    2017     2016  
Stock options     192,307       192,307  
Warrants     1,389,378       100,000  
Unvested restricted stock     670,170       336,000  
Convertible notes     8,619,624       2,608,695  
Total common stock equivalents     10,871,479       3,237,002