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Net Loss Per Share
 6 Months Ended
Jun. 30, 2016
Earnings Per Share [Abstract]  
Net Loss Per Share
Net Loss Per Share

Basic net loss per share is computed using the weighted average number of shares of common stock outstanding, including restricted shares which, although they are legally outstanding and have voting rights, are subject to vesting and are treated as common stock equivalents in calculating basic net loss per share. Diluted net loss per share is computed using the weighted average number of shares of common stock outstanding and dilutive potential shares of common stock from stock options and warrants outstanding during the period. Diluted shares outstanding include the dilutive effect of in-the-money options, which is calculated based on the average share price for each period using the treasury stock method.

Employee share options, non-vested shares and similar equity instruments granted by MRV are treated as potential shares of common stock outstanding in computing diluted net income per share. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service not yet recognized, and the amount of income tax benefits that would be realized and recorded in additional paid-in capital if the deduction for the award would reduce income taxes payable are assumed to be used to repurchase shares.

The following table sets forth the computation of net loss per common share – basic and diluted (in thousands, except per share amounts):
 
 
Three months ended
 
Six months ended
 
 
June 30
 
June 30
 
 
2016
 
2015
 
2016
 
2015
Numerator:
 
 
 
 
 
 
 
 
Net loss
 
$
(2,023
)
 
$
(281
)
 
$
(5,919
)
 
$
(1,349
)
Denominator
 
 
 
 
 
 
 
 
Basic weighted average common shares outstanding
 
7,092

 
6,988

 
7,042

 
7,059

Effect of dilutive securities
 
—

 
—

 
—

 
—

Diluted weighted average common shares outstanding
 
7,092

 
6,988

 
7,042

 
7,059

 
 
 
 
 
 
 
 
 
Net loss per common share
 
 
 
 
 
 
 
 
Basic
 
$
(0.29
)
 
$
(0.04
)
 
$
(0.84
)
 
$
(0.19
)
Diluted
 
$
(0.29
)
 
$
(0.04
)
 
$
(0.84
)
 
$
(0.19
)


Outstanding stock options to purchase 460,692 and 387,286 shares of common stock were excluded from the computation of dilutive loss per shares for the three months ended June 30, 2016 and 2015, respectively, as they were anti-dilutive. Outstanding stock options to purchase 419,990 and 366,812 shares were excluded from the computation of dilutive loss per shares for the six months ended June 30, 2016 and 2015, respectively, as they were anti-dilutive. Treasury shares are excluded from the number of shares outstanding.