EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2016

6. EARNINGS PER SHARE

Income (Loss) per share—The Company computes net income (loss) per share of its platform common stock and tracking stocks using the two-class method in the financial statements. Basic income (loss) per share (“Basic EPS”) excludes dilution and is computed by dividing net loss by the weighted average number of shares outstanding for the period. The Company has no potentially dilutive common share options or unvested restricted common shares.

As of June 30, 2016, the Company's capital structure consists of seven series of common stocks as listed on the Company’s Condensed Balance Sheets in this Quarterly Report on Form 10-Q. In accordance with the Company's management and attribution policies, the Company attributes assets, liabilities, income and expenses to its tracking stocks to reflect or "track" the economic performance of the associated brand contract, as defined below. Accordingly, the Company attributed 95% of the ABI from the brand contracts to the associated tracking stock and expenses directly attributable to those tracking stocks, such as promotional and marketing-related expenses. The Company also assigns a share of its general liabilities and expenses, such as the management fee from our Parent, to the tracking stocks. See Note 2 for additional discussion of tracking stocks.

The following tables show the calculation of net income (loss) for the platform common stock and the six tracking stocks for the three and six months ended June 30, 2016 and 2015:


	For the Three Months Ended June 30, 2016
				Attributed Operating Expenses
		Attributed Income (Loss) from Brand Contracts(1)		Direct Expenses		Management Fees(2)		Total Attributed Operating Expenses		Attributed Net Income (Loss)
Platform Common Stock	$	865,021		991,681		19,348	$	1,011,029	$	(146,008)
Fantex Series Vernon Davis Convertible Tracking Stock		11,539		633		528		1,161		10,378
Fantex Series EJ Manuel Convertible Tracking Stock		30,482		171		143		314		30,168
Fantex Series Mohamed Sanu Convertible Tracking Stock		38,039		28,962		24,135		53,097		(15,058)
Fantex Series Alshon Jeffery Convertible Tracking Stock		1,037,899		652		544		1,196		1,036,703
Fantex Series Michael Brockers Convertible Tracking Stock		105,039		451		377		828		104,211
Fantex Series Jack Mewhort Convertible Tracking Stock		110,738		1,165		971		2,136		108,602
Total	$	2,198,757	$	1,023,715	$	46,046	$	1,069,761	$	1,128,996


	For the Six Months Ended June 30, 2016
				Attributed Operating Expenses
		Attributed Income (Loss) from Brand Contracts(1)		Direct Expenses		Management Fees(2)		Total Attributed Operating Expenses		Attributed Net Income (Loss)
Platform Common Stock	$	988,144		2,497,399		21,969	$	2,519,368	$	(1,531,224)
Fantex Series Vernon Davis Convertible Tracking Stock		(82,209)		8,805		7,337		16,142		(98,351)
Fantex Series EJ Manuel Convertible Tracking Stock		57,378		2,610		2,176		4,786		52,592
Fantex Series Mohamed Sanu Convertible Tracking Stock		471,835		30,650		25,541		56,191		415,644
Fantex Series Alshon Jeffery Convertible Tracking Stock		1,315,504		7,649		6,374		14,023		1,301,481
Fantex Series Michael Brockers Convertible Tracking Stock		213,128		2,100		1,751		3,851		209,277
Fantex Series Jack Mewhort Convertible Tracking Stock		236,917		1,826		1,522		3,348		233,569
Total	$	3,200,697	$	2,551,039	$	66,670	$	2,617,709	$	582,988


	For the Three Months Ended June 30, 2015
				Attributed Operating Expenses
		Attributed Income from Brand Contracts(1)		Direct Expenses		Management Fees(2)		Total Attributed Operating Expenses		Attributed Net Income (Loss)
Platform Common Stock	$	(33,557)	$	1,096,756	$	(8,606)	$	1,088,150	$	(1,121,707)
Fantex Series Vernon Davis Convertible Tracking Stock		84,298		3,249		2,710		5,959		78,339
Fantex Series EJ Manuel Convertible Tracking Stock		73,910		215		178		393		73,517
Fantex Series Mohamed Sanu Convertible Tracking Stock		69,306		1,197		997		2,194		67,112
Fantex Series Alshon Jeffery Convertible Tracking Stock		(1,484,863)		827		689		1,516		(1,486,379)
Fantex Series Michael Brockers Convertible Tracking Stock		619,763		4,840		4,032		8,872		610,891
Total	$	(671,143)	$	1,107,084	$	—	$	1,107,084	$	(1,778,227)


	For the Six Months Ended June 30, 2015
				Attributed Operating Expenses
		Attributed Income from Brand Contracts(1)		Direct Expenses		Management Fees(2)		Total Attributed Operating Expenses		Attributed Net Income (Loss)
Platform Common Stock	$	43,306	$	2,289,465	$	963	$	2,290,428	$	(2,247,122)
Fantex Series Vernon Davis Convertible Tracking Stock		210,659		5,916		4,930		10,846		199,813
Fantex Series EJ Manuel Convertible Tracking Stock		143,896		907		755		1,662		142,234
Fantex Series Mohamed Sanu Convertible Tracking Stock		158,812		2,510		2,099		4,609		154,203
Fantex Series Alshon Jeffery Convertible Tracking Stock		(310,304)		7,805		6,504		14,309		(324,613)
Fantex Series Michael Brockers Convertible Tracking Stock		619,763		4,840		4,032		8,872		610,891
Total	$	866,132	$	2,311,443	$	19,283	$	2,330,726	$	(1,464,594)

(1)

In accordance with the Company's management and attribution policies, 5% of the income from each brand contract is attributed to the Platform Common Stock with the remaining 95% attributed to the associated tracking stock.

(2)

Pursuant to the Company’s management agreement with its Parent as in effect during the three and six months ended June 30, 2016 and 2016, the management fee is calculated as 5% of the cash receipts from the brand contracts during the relevant periods.

During the three and six months ended June 30, 2016, the Company collected cash pursuant to the brand contracts and attributed the management fee as follows:


			Management Fee (5%)
Brand Contract	Cash Receipt		Tracking Stock (95%)		Platform Common (5%)		Total
Vernon Davis Brand Contract	$	11,114	$	528	$	28	$	556
EJ Manuel Brand Contract		3,002		143		8		151
Mohamed Sanu Brand Contract		508,102		24,135		1,269		25,404
Alshon Jeffery Brand Contract		11,445		544		29		573
Michael Brockers Brand Contract		7,927		377		20		397
Jack Mewhort Brand Contract		20,434		971		51		1,022
Andrew Heaney Brand Contract		—		—		—		—
Kendall Wright Brand Contract		177,002		—		8,850		8,850
Terrance Williams Brand Contract		84,079		—		4,204		4,204
Ryan Shazier Brand Contract		97,782		—		4,889		4,889
Three Months Ended June 30, 2016	$	920,888	$	26,698	$	19,348	$	46,046


				Management Fee (5%)
Brand Contract	Cash Receipt		Tracking Stock (95%)		Platform Common (5%)		Total
Vernon Davis Brand Contract	$	154,467	$	7,337	$	386	$	7,723
EJ Manuel Brand Contract		45,805		2,176		115		2,291
Mohamed Sanu Brand Contract		537,716		25,541		1,344		26,885
Alshon Jeffery Brand Contract		134,193		6,374		335		6,709
Michael Brockers Brand Contract		36,853		1,751		92		1,843
Jack Mewhort Brand Contract		32,039		1,522		80		1,602
Andrew Heaney Brand Contract		33,459		—		1,673		1,673
Kendall Wright Brand Contract		177,002		—		8,851		8,851
Terrance Williams Brand Contract		84,079		—		4,204		4,204
Ryan Shazier Brand Contract		97,782		—		4,889		4,889
Six Months Ended June 30, 2016	$	1,333,396	$	44,701	$	21,969	$	66,670

During the three and six months ended June 30, 2015, the Company collected cash pursuant to the brand contracts and attributed the management fee as follows:


			Management Fee (5%)
Brand Contract	Cash Receipt		Tracking Stock (95%)		Platform Common (5%)		Total
Vernon Davis Brand Contract	$	57,029	$	2,710	$	143	$	2,853
EJ Manuel Brand Contract		3,750		178		9		187
Mohamed Sanu Brand Contract		20,999		997		52		1,049
Alshon Jeffery Brand Contract		14,505		689		36		725
Michael Brockers Brand Contract		84,891		4,032		212		4,244
Three Months Ended June 30, 2015	$	181,174	$	8,606	$	452	$	9,058


			Management Fee (5%)
Brand Contract	Cash Receipt		Tracking Stock (95%)		Platform Common (5%)		Total
Vernon Davis Brand Contract	$	103,786	$	4,930	$	259	$	5,189
EJ Manuel Brand Contract		15,895		755		40		795
Mohamed Sanu Brand Contract		44,187		2,099		110		2,209
Alshon Jeffery Brand Contract		136,931		6,504		342		6,846
Michael Brockers Brand Contract		84,891		4,032		212		4,244
Six Months Ended June 30, 2015	$	385,690	$	18,320	$	963	$	19,283

The total management fee is included in the direct expenses of the Platform Common Stock.

On July 22, 2016, the Company and Parent amended the management agreement to provide that the Company will not pay any remuneration to the Parent in respect of gross cash received by the Company pursuant to the 14 brand contracts linked to its Fantex Series Professional Sports Convertible Tracking Stock.

Fantex, Inc. 10-Q