Net Income (Loss) per Share

12 Months Ended

Dec. 31, 2016

Note J – Net Income (Loss) per Share

The following table provides the computation of basic and diluted net income (loss) per share for the years ended December 31, 2016, 2015 and 2014 (in thousands, except per share amounts):

	Year Ended December 31,
	2016			2015			2014
Net income (loss)	$	(5,723	)	$	(2,535	)	$	1,132
Deemed dividends on preferred stock		18,011			40			-
Amortization of preferred stock beneficial conversion feature		6,663			82			-
Net income (loss) available to common stockholders	$	(30,397	)	$	(2,657	)	$	1,132

Basic weighted average common shares outstanding		77,542			60,526			53,483
Effect of potentially dilutive securities		-			-			2,533
Diluted weighted average shares outstanding		77,542			60,526			56,016
Basic net income (loss) per share attributable to common stockholders	$	(0.39	)	$	(0.04	)	$	0.02
Diluted net income (loss) per share attributable to common stockholders	$	(0.39	)	$	(0.04	)	$	0.02

We have adopted the two class method in calculating earnings per share as we have determined our preferred shares to be participating securities. Under this method, we have included in weighted average shares outstanding all of our preferred shares as we have assumed conversion to common shares. We have not allocated the net loss to our participating shareholders as they do not have a contractual obligation to share in losses.

For the year ended December 31, 2016, there were $1.7 million options excluded from the calculation of diluted earnings per share as anti-dilutive. For the year ended December 31, 2015, there were 103,000 options excluded from the calculation of diluted earnings per share as anti-dilutive. For the year ended December 31, 2014, there were 400,000 options excluded from the calculation of diluted earnings per share as anti-dilutive.