EARNINGS PER SHARE (''EPS'')

9 Months Ended

Sep. 30, 2014

EARNINGS PER SHARE ("EPS")

EARNINGS PER SHARE ("EPS")

10. EARNINGS PER SHARE ("EPS")

        The computations of basic EPS are based on our weighted average shares outstanding. During the three and nine months ended September 30, 2014, the weighted average shares outstanding were increased by 1,000 and 4,000 shares, respectively, to reflect the dilutive effect of stock options. Not included in the computation of diluted EPS were outstanding options to purchase 11,850 shares of Common Stock during the three and nine months ended September 30, 2014, because the options' exercise prices were greater than the average market price of the shares.

        For purposes of calculating basic EPS for the three and nine months ended September 30, 2013, the 65,028,571 shares of preferred stock issued in connection with the Merger have been assumed to have been converted into 91,039,999 shares of Common Stock. As of the Acquisition Date, a subsidiary of CIM Urban REIT had agreed to vote its 97.8% post-Merger ownership of CIM Commercial in favor of an increase in the number of authorized CIM Commercial shares of Common Stock to one billion (200,000,000 after giving effect to the reverse stock split), thereby satisfying the condition for the automatic conversion of these shares. The actual conversion of the shares of preferred stock to shares of Common Stock occurred on April 29, 2014.