Quarterly report pursuant to Section 13 or 15(d)

Net Loss Per Common Share

v2.4.0.6
Net Loss Per Common Share
 6 Months Ended
Jun. 30, 2012
Net Loss Per Common Share [Abstract]  
Net Loss Per Common Share

3. Net Loss Per Common Share

The Company calculates loss per share using the two-class method, which is an earnings allocation formula that determines earnings per share for Common Stock and participating securities according to dividends declared and non-forfeitable participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to Common Stock and participating securities based on their respective rights to receive dividends. Holders of restricted Common Stock were entitled to all cash dividends, when and if declared, and such dividends are non-forfeitable. The participating securities do not have a contractual obligation to share in any losses of the Company. As a result, net losses are not allocated to the participating securities for any periods presented.

Basic net loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of Common Stock outstanding during the period, without consideration for Common Stock equivalents. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of Common Stock and Common Stock equivalents outstanding for the period. For purposes of this calculation, Common Stock equivalents are only included in the calculation of diluted net loss per share when the effect is dilutive.

A calculation of basic and diluted net loss per share follows:

 

                                 
($ in thousands except share and per share amounts)   For the three months ended
June 30,		     For the six months ended
June 30,		  
  2012     2011     2012     2011  
         

Historical net loss per share:

                                
         

Numerator:

                                
         

Net loss

   $ (6,455 )    $ (3,733 )    $ (13,011 )    $ (26,276 ) 
         

Common Stock dividend to Series A Convertible Preferred Stockholders

     —         (5,861 )      —         (5,861 )
   

 

 

    

 

 

    

 

 

    

 

 

  
         

Net loss attributed to Common Stock

   $ (6,455 )    $ (9,594 )    $ (13,011 )    $ (32,137 ) 
         

Denominator:

                                
         

Weighted average common shares outstanding—basic and diluted

     19,194,053       5,848,642       18,899,149       5,322,793  
   

 

 

    

 

 

    

 

 

    

 

 

  
         

Basic and diluted net loss per common share

   $ (0.34 )    $ (1.64 )    $ (0.69 )    $ (6.04 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

 

The Company’s potential dilutive securities which include convertible preferred stock, stock options, and warrants have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average common shares outstanding used to calculate both basic and diluted net loss per share are the same. The following shares of potentially dilutive securities have been excluded from the computations of diluted weighted average shares outstanding, as the effect of including such securities would be antidilutive:

 

                                 
    For the three months ended June 30,     For the six months ended June 30,  
    2012     2011     2012     2011  

Series A Convertible Preferred Stock

     —         4,357,885       —         4,357,885  

Series B Convertible Preferred Stock

     —         2,525,677       —         2,441,953  

Series C Convertible Preferred Stock

     —         943,870       —         474,542  

Warrants to purchase Common Stock

     1,042,216       684,671       1,055,509       573,223  

Options to purchase Common Stock

     2,324,400       1,454,894       2,161,707       1,315,345  
   

 

 

    

 

 

    

 

 

    

 

 

  
      3,366,616       9,966,997       3,217,216       9,162,948