Net Income (Loss) per Share

9 Months Ended

Sep. 30, 2016

Basic net income (loss) per common share is computed by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is determined based on the assumption that dilutive restricted stock and restricted stock unit awards have vested and outstanding dilutive stock options have been exercised and the aggregate proceeds were used to reacquire common stock using the average price of such common stock for the period. The total number of shares issued or reserved for future issuance under outstanding stock options at September 30, 2016 and 2015 was 877,569 and 576,225, respectively, and the total number of shares of restricted stock and shares reserved for restricted stock units outstanding at September 30, 2016 and 2015 was 293,340 and 90,902, respectively. The foregoing share numbers have been retroactively adjusted to reflect the one-for-fifteen reverse stock split completed on February 4, 2016. Except for the three months ended September 30, 2016, the outstanding stock options were anti-dilutive for all periods presented, as reflected in the table below.

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



	Three Months Ended September 30,					Nine Months Ended September 30,
	2016		2015			2016			2015
Net income (loss) attributable to ION	$	1,699	$	(20,383	)	$	(58,657	)	$	(19,578	)
Weighted average number of common shares outstanding	11,786		10,984			11,269			10,978
Effect of dilutive stock awards	121		—			—			—
Weighted average number of diluted common shares outstanding	11,907		10,984			11,269			10,978

Basic net income (loss) per share	$	0.14	$	(1.86	)	$	(5.21	)	$	(1.78	)
Diluted net income (loss) per share	$	0.14	$	(1.86	)	$	(5.21	)	$	(1.78	)