Quarterly report pursuant to Section 13 or 15(d)

Net Loss Per Common Share

Net Loss Per Common Share
3 Months Ended
Mar. 31, 2014
Earnings Per Share [Abstract]  
Net Loss Per Common Share


Basic net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed by giving effect to all potential dilutive common shares, including outstanding options and warrants.

Potential dilutive common shares also include the dilutive effect of the common stock underlying in-the-money stock options and warrants that were calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of an option or warrant is assumed to be used to repurchase shares in the current period. In addition, the average amount of compensation cost for in-the-money options, if any, for future service that the Company has not yet recognized when the option is exercised, is also assumed to repurchase shares in the current period. A reconciliation of the numerator and denominator used in the calculation is as follows (in thousands, except per share amounts):


     Three Months Ended
March 31,
     2014     2013  



Net loss-basic

   $ (7,109   $ (9,214

Less: noncash income from change in fair value of common stock warrants

     1,757        —     







Net loss-diluted

   $ (8,866 )   $ (9,214 )









Weighted average common shares outstanding

     59,303        56,486   

Dilutive effect of warrants

     1,997        —     







Weighted-average common shares outstanding and potential dilutive common shares — diluted

     61,300        56,486   







Net loss per share



   $ (0.12 )   $ (0.16 )


   $ (0.14 )   $ (0.16 )







The following outstanding warrants, options and purchase rights under the Company’s 2004 Employee Stock Purchase Plan were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an antidilutive effect (in thousands):


     As of March 31,  
     2014      2013  

Shares issuable upon exercise of warrants

     4,288         11,573   

Shares issuable upon exercise of stock options

     6,656         6,481   

Shares issuable related to the ESPP

     31         48