Quarterly report pursuant to Section 13 or 15(d)

Net Loss Per Share

v3.2.0.727
Net Loss Per Share
6 Months Ended
Jun. 30, 2015
Earnings Per Share [Abstract]  
Net Loss Per Share
Net Loss Per Share
The Company uses the two-class method to compute net loss per share because the Company has issued securities, other than common stock, that contractually entitle the holders to participate in dividends and earnings of the Company. The two-class method requires earnings for the period to be allocated between common stock and participating securities based upon their respective rights to receive distributed and undistributed earnings. Holders of each series of the Company’s convertible preferred stock were entitled to participate in dividends, when and if declared by the board of directors, that were made to common stockholders, and as a result were considered participating securities.
Under the two-class method, for periods with net income, basic net income per common share is computed by dividing the net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Net income attributable to common stockholders is computed by subtracting from net income the portion of current year earnings that the participating securities would have been entitled to receive pursuant to their dividend rights had all of the year’s earnings been distributed. No such adjustment to earnings is made during periods with a net loss, as the holders of the participating securities have no obligation to fund losses. Diluted net loss per common share is computed under the two-class method by using the weighted average number of shares of common stock outstanding, plus, for periods with net income attributable to common stockholders, the potential dilutive effects of stock options and warrants. In addition, the Company analyzes the potential dilutive effect of the outstanding participating securities when calculating diluted earnings per share. Under the “treasury stock” method, it is assumed that the warrants and options were exercised at the beginning of the period and that the funds obtained from the exercise were used to reacquire the Company’s common stock at the average market price for the period and includes those securities when they are dilutive. Under the “if-converted” method, it is assumed that the outstanding participating securities convert into common stock at the beginning of the period. The Company reports the more dilutive of the approaches as its diluted net income or net loss per share during the period.

The following table summarizes the computation of basic and diluted net loss per share attributable to the Company’s common stockholders:
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2015
 
2014
 
2015
 
2014
Income (loss) attributable to common stock - basic:
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
(6,492
)
 
$
1,671

 
$
(12,423
)
 
$
1,403

Deemed dividend for beneficial conversion feature on Series D-2 Preferred

 

 

 
(909
)
Deemed dividend for antidilution adjustments to convertible preferred stock

 

 

 
(214
)
Accretion of convertible preferred stock

 

 

 
(510
)
Allocation of net income to convertible preferred stockholders

 
(262
)
 

 
(303
)
Income (loss) from continuing operations attributable to common stock - basic
(6,492
)
 
1,409

 
(12,423
)
 
(533
)
Income (loss) from discontinued operations attributable to common stock - basic
(3,005
)
 
562

 
(3,458
)
 
1,242

Net income (loss) attributable to common stock - basic
$
(9,497
)
 
$
1,971

 
$
(15,881
)
 
$
709

 
 
 
 
 
 
 
 
Income (loss) attributable to common stock - diluted:
 
 
 
 
 
 
 
Income (loss) from continuing operations attributable to common stock - basic
$
(6,492
)
 
$
1,409

 
$
(12,423
)
 
$
(533
)
Derivative fair value adjustment

 
(7,297
)
 

 
(10,080
)
Loss from continuing operations attributable to common stock - diluted
(6,492
)
 
(5,888
)
 
(12,423
)
 
(10,613
)
Loss from discontinued operations attributable to common stock - diluted
(3,005
)
 
562

 
(3,458
)
 
1,242

Net income (loss) attributable to common stock - diluted
$
(9,497
)
 
$
(5,326
)
 
$
(15,881
)
 
$
(9,371
)
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding:
 
 
 
 
 
 
 
Weighted-average common shares outstanding - basic
12,249,487

 
5,181,174

 
10,393,289

 
2,771,020

Allocation of common stock warrants as participating securities

 
273,197

 

 
273,709

Weighted-average common shares outstanding - diluted
12,249,487

 
5,454,371

 
10,393,289

 
3,044,729

 
 
 
 
 
 
 
 
Income (loss) per share - basic:
 
 
 
 
 
 
 
Continuing operations
$
(0.53
)
 
$
0.27

 
$
(1.20
)
 
$
(0.19
)
Discontinued operations
(0.25
)
 
0.11

 
(0.33
)
 
0.45

Net income (loss) per share - basic
$
(0.78
)
 
$
0.38

 
$
(1.53
)
 
$
0.26

Income (loss) per share - diluted:
 
 
 
 
 
 
 
Continuing operations
$
(0.53
)
 
$
(1.08
)
 
$
(1.20
)
 
$
(3.49
)
Discontinued operations
(0.25
)
 
0.10

 
(0.33
)
 
0.41

Net income (loss) per share - diluted
$
(0.78
)
 
$
(0.98
)
 
$
(1.53
)
 
$
(3.08
)


The following securities, presented on a common stock equivalent basis, have been excluded from the calculation of weighted average common shares outstanding because their effect is anti-dilutive.
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2015
 
2014
 
2015
 
2014
Convertible preferred stock:
 
 
 
 
 
 
 
Series A Preferred

 
6,149

 

 
6,149

Series B Preferred

 
131,685

 

 
131,685

Series C Preferred

 
783,515

 

 
783,515

Series C-2 Preferred

 
173,213

 

 
173,213

Series D-1 Preferred

 
296,773

 

 
296,773

Series D-2 Preferred

 
300,549

 

 
300,549

Series C-1 Preferred warrants
14,033

 
14,033

 
14,033

 
14,033

Stock options
1,153,369

 
215,467

 
1,153,369

 
215,467

ESPP
7,298

 

 
7,298