Quarterly report pursuant to Section 13 or 15(d)

Net Loss per Share

Net Loss per Share

9 Months Ended

Sep. 30, 2016

The Company accounts for and discloses net loss per common share in accordance with FASB ASC Topic 260, Earnings Per Share. Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding (which includes the common share equivalents of the outstanding Series B preferred shares prior to their conversion to common stock in March 2015). Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares that would have been outstanding during the period assuming the issuance of common shares for all potential dilutive common shares outstanding. Potential common shares consist of shares issuable upon the exercise of stock options and warrants.

The following table sets forth the computation of basic and diluted net loss per share (amounts in thousands, except per share amounts):

	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Numerator:
Net income (loss)	$	(1,881	)	$	(508	)	$	(9,120	)	$	(19,673	)
Change in fair value of derivative liability - income/(loss)		—			3,086			2,173			—
Net income (loss) attributable to shareholders	$	(1,881	)	$	(3,544	)	$	(11,293	)	$	(19,673	)

Denominator:
Weighted average shares outstanding used to compute net income (loss) per share:
Basic		707,478			694,375			702,634			609,803
Adjustment for dilutive effects of warrants		—			2,571			783			—
Diluted		707,478			696,946			703,417			609,803

Net income (loss) per share
Basic (net income / basic shares)	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.03	)
Diluted (net income attributable/ diluted shares)	$	(0.00	)	$	(0.01	)	$	(0.02	)	$	(0.03	)

The following table sets forth the number of potential common shares excluded from the calculations of net loss per diluted share because their inclusion would be anti-dilutive (in thousands):

	For the three months ended September 30,				For the nine months ended September 30,
	2016		2015		2016		2015
Options to purchase common stock		24,651		24,614		24,651		24,614
Warrants to purchase common stock		—		2,571		783		—
Total		24,651		27,185		25,434		24,614