EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2016

Basic earnings per share includes no dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the periods presented. The calculation of basic earnings per share for the three months ended March 31, 2016 includes the weighted average of common shares outstanding. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity, such as convertible preferred stock, stock options, warrants or convertible securities. Due to their anti-dilutive effect, the calculation of diluted earnings per share for the three months ended March 31, 2016 excludes: 1) options to purchase 2,607,552 shares of common stock, 2) warrants to purchase 4,252,135 shares of common stock, 3) Series B Preferred stock which is convertible into 8,283,234 shares of common stock and 4) Series A Preferred and Series C Preferred stock, also convertible to common stock.

The following is a reconciliation of the numerator and denominator for basic and diluted earnings per share for the three months ended March 31, 2016 and 2015:



	Three Months Ended March 31,
	2016			2015
Basic Earnings per Share
Numerator:
Net (loss) income available to common shareholders	$	(2,163,774	)	$	(16,966,455	)
Denominator:
Weighted-average shares outstanding	29,304,722			28,118,396
Basic earnings per share	$	(0.07	)	$	(0.60	)

Diluted Earnings per Share
Numerator:
Net (loss) income available to common shareholders	$	(2,163,774	)	$	(16,966,455	)
Denominator:
Weighted-average shares outstanding	29,304,722			28,118,396
Effect of dilutive securities
Stock options and warrants	—			—
Preferred stock	—			—
Diluted weighted-average shares outstanding	29,304,722			28,118,396
Diluted earnings per share	$	(0.07	)	$	(0.60	)