Annual report pursuant to Section 13 and 15(d)

Net Loss Per Common Share

v2.4.0.6
Net Loss Per Common Share
 12 Months Ended
Dec. 31, 2012
Net Loss Per Common Share [Abstract]  
Net Loss Per Common Share

3. Net Loss Per Common Share

The Company calculates loss per share using the two-class method, which is an earnings allocation formula that determines earnings per share for Common stock and participating securities according to dividends declared and non-forfeitable participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to Common stock and participating securities based on their respective rights to receive dividends. Holders of restricted Common stock were entitled to all cash dividends, when and if declared, and such dividends are non-forfeitable. The participating securities do not have a contractual obligation to share in any losses of the Company. As a result, net losses are not allocated to the participating securities for any periods presented.

Basic net loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of Common stock outstanding during the period, without consideration for Common stock equivalents. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of Common stock and Common stock equivalents outstanding for the period. For purposes of this calculation, Common stock equivalents are not included in the calculation of diluted net loss per share.

A calculation of basic and diluted net loss per share follows:

 

                         
    For the year ended December 31,  
($ in thousands except share and per share amounts)   2012     2011     2010  

Historical net loss per share:

                        

Numerator

                        

Net loss

   $ (27,610 )    $ (36,360 )    $ (9,982 ) 

Common stock dividend to Series A Preferred stockholders

     —         (5,861 )      —    
   

 

 

    

 

 

    

 

 

  

Net loss attributed to Common stockholders

   $ (27,610 )    $ (42,221 )    $ (9,982 ) 
   

 

 

    

 

 

    

 

 

  

Denominator

                        

Weighted-average common shares outstanding—Denominator for basic and diluted net loss per share

     21,654,984       7,662,984       4,453,786  
   

 

 

    

 

 

    

 

 

  

Basic and diluted net loss per share attributed to common stockholders

   $ (1.27 )    $ (5.51 )    $ (2.24 ) 
   

 

 

    

 

 

    

 

 

  

The Company’s potential dilutive securities which include convertible preferred stock, unvested restricted stock, stock options, and warrants have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average Common stock outstanding used to calculate both basic and diluted net loss per share are the same.

 

The following shares of potentially dilutive securities have been excluded from the computations of diluted weighted average shares outstanding as the effect of including such securities would be antidilutive:

 

                         
    For the year ended December 31,  
    2012     2011     2010  

Series A Shares

     —         3,796,733       2,617,242  

Series B Shares

     —         2,158,935       —    

Series C Shares

     —         1,966,635       —    

Unvested restricted Common stock

     —         —         322,900  

Warrants to purchase Common stock

     1,091,558       804,949       261,860  

Options to purchase Common stock

     2,279,603       1,479,291       296,112  
   

 

 

    

 

 

    

 

 

  
      3,371,161       10,206,543       3,498,114