Quarterly report pursuant to Section 13 or 15(d)

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.8.0.1
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
9 Months Ended
Sep. 30, 2017
Accounting Policies [Abstract]  
Summary of Fair Value Assumptions
The principal assumptions used in applying the model were as follows:
 
For Three and Nine Months Ended September 30, 2017
Assumptions:
 
Risk-free interest rate
1.5% - 1.6%
Expected life
3 years
Expected volatility
60%
Dividends
0.0%
Summary of Level 3 Liabilities
A summary of the Company's Level 3 derivative liabilities for the nine months ended September 30, 2017 is as follow (in thousands):
Balance, December 31, 2016
$

Fair value of derivative liabilities at issuance
3,313

Fair value change of derivative liabilities
(1,530
)
Balance, September 30, 2017
$
1,783

Schedule of Earnings Per Share, Basic and Diluted
Diluted net income (loss) per common share is based on the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding and computed as follows:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2017
 
2016
 
2017
 
2016
 
(In thousands, except share and per share data)
Numerator:
 
 
 
 
 
 
 
Net income (loss) to common stockholders
$
(4,237
)
 
$
(4,611
)
 
$
4,958

 
$
(10,355
)
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted-average common shares, basic
27,327,936

 
22,853,865

 
24,588,296

 
22,775,918

Weighted-average common shares, diluted*
27,327,936

 
22,853,865

 
26,138,201

 
22,775,918

Net income (loss) per common share:
 
 
 
 
 
 
 
Basic:
$
(0.16
)
 
$
(0.20
)
 
$
0.20

 
$
(0.45
)
Diluted:
$
(0.16
)
 
$
(0.20
)
 
$
0.19

 
$
(0.45
)
 
 
 
 
 
 
 
 
* The diluted earnings per common share included 462,046 unvested Restricted Stock Units and the weighted average effect of 1,087,859 stock options that are potentially dilutive to earnings per share for the nine months ended September 30, 2017, since the exercise price of such securities was less than the average market price during the period. For the three months ended September 30, 2017 and three and nine months ended September 30, 2016, these securities would be anti-dilutive and were excluded.
Summary of Components Excluded from Computation of Diluted Net Loss Per Share
Potentially dilutive common shares from employee equity plans are determined by applying the treasury stock method to the assumed exercise of warrants and share options and were excluded from the computation of diluted net income (loss) per share because their inclusion would be anti-dilutive and consist of the following:
 
September 30,
 
2017
 
2016
Stock options
1,620,507

 
1,718,832

Warrants
2,355,506

 

Restricted Stock Units
462,046

 
431,747

Total
4,438,059

 
2,150,579