EARNINGS PER SHARE (''EPS'')

12 Months Ended

Dec. 31, 2015

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. The basic weighted average shares of common stock outstanding were 97,588,000 and 97,173,000for the years ended December 31, 2015 and 2014, respectively.  For the years ended December 31, 2015 and 2014, the diluted weighted average shares of common stock outstanding were increased by 0 and 3,000 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 for the year ended December 31, 2014, because the options’ exercise prices were greater than the average market price of the shares. EPS for the year-to-date period may differ from the sum of quarterly EPS amounts due to the required method for computing EPS in the respective periods.

For purposes of calculating basic EPS for the year ended December 31, 2013, the approximately 65,000,000 shares of preferred stock issued in connection with the Merger were assumed to have been converted into 91,040,000 shares of Common Stock. As of the Acquisition Date, a subsidiary of CIM 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.