Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares of common stock outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. These unvested restricted shares, although classified as issued and outstanding at December 31, 2017 and 2016, are considered contingently returnable until the restrictions lapse and will not be included in the basic net income (loss) per share calculation until the shares are vested. Unvested shares of our restricted stock do not contain non-forfeitable rights to dividends and dividend equivalents. Vested RSUs (for which shares of common stock have not yet been delivered) are included in the calculations of basic net income (loss) per share. Unvested RSUs are not included in calculations of basic net income (loss) per share, as they are not considered issued and outstanding at time of grant.

Diluted net income (loss) per share is computed by giving effect to all potential shares of common stock, including stock options, preferred stock, RSUs, and unvested restricted stock awards, to the extent they are dilutive. For the year ended December 31, 2016, all such common stock equivalents have been excluded from diluted net loss per share as the effect to net loss per share would be anti-dilutive (decrease our net loss per share).

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share (in thousands, except per share data):



	Year Ended
	December 31,
Numerator:	2017		2016
Net income (loss)	$	5,785	$	(3,533	)
Less: preferred stock dividends	70		12
Net income (loss) attributable to common stockholders	$	5,715	$	(3,545	)
Denominator:
Weighted-average number of shares of common stock for basic net income (loss) per share	37,603		35,611
Add effect of dilutive securities:
Unvested RSUs	1,752		—
Unvested restricted stock	341		—
Shares of common stock issuable upon conversion of preferred stock	1,706		—
Warrants	38		—
Weighted-average number of shares of common stock for diluted net income (loss) per share	41,440		35,611
Basic net income (loss) per share	$	0.15	$	(0.10	)
Diluted net income (loss) per share	$	0.14	$	(0.10	)

The following table represents the potential shares that were excluded from the computation of weighted-average number of shares of common stock in computing the diluted net income (loss) per share for the periods presented because including them would have had an anti-dilutive effect (in thousands):



	Year Ended
	December 31,
	2017	2016
Unvested RSUs	—	3,196
Stock options outstanding	1,202	1,222
Unvested restricted stock awards	—	363
Shares of common stock issuable upon conversion of Series A-2 preferred stock	—	79
Warrants	512	—