Quarterly report pursuant to Section 13 or 15(d)

Earnings (Loss) Per Share

v3.3.0.814
Earnings (Loss) Per Share
9 Months Ended
Sep. 30, 2015
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share

4.

Earnings (Loss) Per Share

Basic earnings (loss) per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares and, except for periods with a loss from operations, participating securities outstanding during the period.  Diluted earnings (loss) per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued.  Potential common shares that may be issued by the Company include convertible debt, convertible preferred stock, options and warrants.

Diluted earnings (loss) per common share for the three-month and nine-month periods ended September 30, 2015 and 2014 excludes the effects of 19.3 million and 17.7 million common share equivalents, respectively, since such inclusion would be anti-dilutive.  The excluded shares consist of common shares issuable upon exercise of outstanding stock options and warrants, and upon the conversion of convertible debt and convertible preferred stock.

The Company’s unvested stock awards contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid (referred to as “participating securities”).  Therefore, the unvested stock awards are required to be included in the number of shares outstanding for both basic and diluted earnings per share calculations.  However, due to our loss from continuing operations, 503,500 shares of unvested restricted stock for the three-month and nine-month periods ended September 30, 2015, and 563,500 shares of unvested restricted stock for the three-month and nine-month periods ended September 30, 2014, respectively, were excluded in determining basic and diluted loss per share because such inclusion would be anti-dilutive.