Overstock.com 2004 Annual Report Download - page 76

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reconciliation of net loss to pro forma net loss as if the fair value method had been applied to all awards.
Year ended December 31,
2002 2003 2004
Net loss, as reported $(4,560) $(11,887) $(5,002)
Add: Stock-based employee compensation expense included in reported net income net of related tax effects 3,276 846 360
Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards,
net of related tax effects (4,404) (2,714) (3,747)
Pro forma net loss $(5,688) $(13,755) $(8,389)
Net loss per common share
Basic and diluted—as reported $ (0.88) $ (0.75) $ (0.29)
Basic and diluted—pro forma $ (0.97) $ (0.87) $ (0.48)
The weighted average grant-date fair value of options granted during 2002, 2003 and 2004 was $8.21, $8.27 and $15.39 per share, respectively, and was
estimated using the assumptions discussed in Note 14.
Stock-based awards to non-employees are accounted for under the provisions of FAS 123 and Emerging Issues Task Force Issue 96-18, Accounting for
Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services.
Earnings (loss) per share
Basic earnings (loss) per share is computed by dividing net income (loss) attributable to common shares by the weighted average number of common
shares outstanding during the period. Diluted earnings (loss) per share assumes the exercise of all options and warrants which are dilutive using the treasury
stock method (whether exercisable or not) and assumes the conversion of convertible senior notes, if dilutive, using the "if converted" method.
F-13