Earnings Per Share

9 Months Ended

Sep. 30, 2015

5. Earnings Per Share

The following table provides the components of the calculations of basic and diluted earnings per share (in thousands, except share amounts):

	Three Months Ended						Nine Months Ended
	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
Numerator:
Net loss attributable to common shareholders	$	(10,238	)	$	(9,377	)	$	(30,568	)	$	(81,461	)


Denominator:
Weighted average number of common shares outstanding	177,369,017			169,557,223			174,724,746			154,539,225

When the Company is in a net loss position, all common stock equivalents would be considered to be anti-dilutive and are, therefore, not included in the determination of diluted earnings per share.

The potential dilutive common shares are summarized as follows:

	At September 30,
	2015	2014
Stock options outstanding	11,789,611	7,267,404
Restricted stock outstanding	395,558	433,336
Common stock warrants (1)	4,192,567	4,219,442
Preferred stock (2)	5,554,594	5,554,594

Number of dilutive potential common shares	21,932,330	17,474,776

(1)

During the three months ended September 30, 2015 and 2014, the Company granted 3,270,000 and 2,454,000 stock options, respectively. During the nine months ended September 30, 2015 and 2014, the Company granted 3,920,000 and 3,140,000 stock options, respectively.

(2)

In May 2011, the Company issued 7,128,563 warrants as part of an underwritten public offering. As a result of additional public offerings, and pursuant to the effect of the anti-dilution provisions of these warrants, the number of warrants increased to 22,995,365. Of these warrants, 192,467 and 219,349 were unexercised as of September 30, 2015 and 2014, respectively. In February 2013, the Company issued 23,637,500 warrants as part of an underwritten public offering. Of these warrants, 100 were unexercised as of September 30, 2015 and 2014. In January 2014, the Company issued 4,000,000 warrants as part of an underwritten public offering. Of these warrants, all are unexercised as of September 30, 2015 and 2014. As of September 30, 2015, the remaining warrants have a weighted average exercise price of $3.86.

(3)

The preferred stock amount represents the dilutive potential common shares of the Series C redeemable convertible preferred stock issued on May 16, 2013 based on the conversion price of the preferred stock as of September 30, 2015. Of the 10,431 preferred shares issued in May 2013, 5,200 had been converted to common stock as of September 30, 2015.