Quarterly report pursuant to Section 13 or 15(d)

Net Loss Per Common Share

v2.4.0.8
Net Loss Per Common Share
 9 Months Ended
Sep. 30, 2014
Earnings Per 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 (unvested restricted stock), if any, 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, if any, based on their respective rights to receive dividends. Holders of restricted Common Stock are 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 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 by the weighted-average number of Common Stock and Common Stock equivalents outstanding for the period.
 
A calculation of basic and diluted net loss per share follows:
 
 
 
For the three months ended
 
For the nine months ended
 
 
 
September 30,
 
September  30,
 
($ in thousands except share and per share amounts)
 
2014
 
2013
 
2014
 
2013
 
Net loss per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
 
$
(4,592)
 
$
(7,832)
 
$
(16,673)
 
$
(27,360)
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding—denominator for basic and diluted net loss per share
 
 
36,024,810
 
 
32,634,683
 
 
35,977,355
 
 
28,664,822
 
Basic and diluted net loss per common share
 
$
(0.13)
 
$
(0.24)
 
$
(0.46)
 
$
(0.95)
 
 
Included in Common Stock issued and outstanding as of September 30, 2014 are 8,287,384 shares of unvested restricted stock, which is excluded from the average weighted Common Shares outstanding since its effect would be dilutive.
 
The Company’s potential dilutive securities which include unvested restricted 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 number of shares of Common Stock outstanding used to calculate both basic and diluted net loss per share is the same.
 
The following weighted average 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
 
For the nine months ended
 
 
 
September 30,
 
September 30,
 
 
 
2014
 
2013
 
2014
 
2013
 
Warrants to purchase Common Stock
 
 
685,061
 
 
1,040,921
 
 
696,526
 
 
1,097,869
 
Options to purchase Common Stock
 
 
2,171,032
 
 
4,285,503
 
 
2,312,461
 
 
4,130,936
 
Unvested Restricted Stock
 
 
6,308,038
 
 
—
 
 
5,880,063
 
 
—
 
 
 
 
9,164,131
 
 
5,326,424
 
 
8,889,050
 
 
5,228,805