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 unvested restricted stock. Unvested restricted stock, although classified as issued and outstanding at September 30, 2018 and 2017, is 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 restricted stock does not contain non-forfeitable rights to dividends and dividend equivalents. 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, to the extent they are dilutive. For the three and nine months ended September 30, 2018, 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 (due to the net loss).

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):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2018			2017		2018			2017
Numerator:
Net income (loss)	$	(1,470	)	$	7,104	$	(4,444	)	$	5,846
Less: preferred stock dividends	3			3		9			9
Net income (loss) attributable to common stockholders	$	(1,473	)	$	7,101	$	(4,453	)	$	5,837
Denominator:
Weighted-average number of shares of common stock for basic net income (loss) per share	48,851			36,897		47,489			37,078
Add effect of dilutive securities:
Unvested restricted stock units	—			672		—			672
Unvested restricted stock	—			249		—			249
Shares of common stock issuable upon conversion of preferred stock	—			79		—			79
Weighted-average shares outstanding - diluted	48,851			37,897		47,489			38,078
Basic net income (loss) per share	$	(0.03	)	$	0.19	$	(0.09	)	$	0.16
Diluted net income (loss) per share	$	(0.03	)	$	0.19	$	(0.09	)	$	0.15

The weighted-average number of shares for all periods presented includes 988,000 shares of vested RSUs, respectively, as discussed in Note 9.

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):



	Nine Months Ended September 30,
	2018	2017
Unvested restricted stock units	2,137	1,715
Unvested restricted stock awards	113	105
Outstanding stock options	1,183	1,206
Shares of common stock issuable upon conversion of Series A-2 Preferred	110	—
Shares of common stock issuable upon conversion of Series B Preferred	1,339	—
Shares of common stock issuable upon conversion of Series C Preferred	2,583	—
Warrants	—	550
Total	7,465	3,576