Quarterly report pursuant to Section 13 or 15(d)

Net Loss Per Common Share

v2.4.0.8
Net Loss Per Common Share
6 Months Ended
Jun. 30, 2014
Net Loss Per Common Share

NOTE 2 — 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

June 30,

 

 

Six Months Ended

June 30,

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss - basic

$

(766

)

 

$

(12,788

)

 

$

(7,875

)

 

$

(22,002

)

Less: noncash income from change in fair

   value of common stock warrants

 

(6,665

)

 

 

 

 

 

(8,122

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss - diluted

 

(7,431

)

 

 

(12,788

)

 

 

(15,997

)

 

 

(22,002

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

59,347

 

 

 

57,037

 

 

 

59,325

 

 

 

56,763

 

Dilutive effect of warrants

 

3,651

 

 

 

 

 

 

4,108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

   and dilutive potential common shares —

   diluted

 

62,998

 

 

 

57,037

 

 

 

63,433

 

 

 

56,763

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.01

)

 

$

(0.22

)

 

$

(0.13

)

 

$

(0.39

)

Diluted

$

(0.12

)

 

$

(0.22

)

 

$

(0.25

)

 

$

(0.39

)

 

 

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):

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Shares issuable upon exercise of warrants

 

 

 

 

9,634

 

 

 

 

 

 

9,634

 

Shares issuable upon exercise of stock options

 

8,161

 

 

 

6,570

 

 

 

8,161

 

 

 

6,570

 

Shares issuable related to the ESPP

 

71

 

 

 

85

 

 

 

71

 

 

 

85