For the year ended December 31,

Pro forma
2017

Unaudited
2017

Pro forma
2016

2016

2015

2014

2013

2012

Ratio of earnings to fixed charges(1)(2)(3)(4)(5)

—

—

—

—

—

—

4.8

—

Six
Months

Six
Months
Ended

For the year ended December 31,

Ended
June 30, 2017
(pro forma)

June 30,
2017
(actual)

2016
(pro
forma)

2016

2015

2014

2013

2012

(amounts in thousands)

Fixed Coverage Ratio:

Add: pre-tax income (loss) from continuing operations before adjustment for income or loss from equity investees(3)

$

(15,031

)

$

(4,588

)

$

(65,781

)

$

(49,429

)

$

(39,099

)

$

(5,026

)

$

51,862

$

(42,058

)

Add: fixed charges

16,104

15,698

33,585

29,439

27,286

16,245

13,664

3,122

Add: amortization of capitalized interest

—

—

—

—

—

—

—

—

Add: distributed income of equity investees

—

—

—

—

—

—

—

—

Add: share of pre-tax losses of equity investees for which charges arising from guarantees are included in fixed charges

—

—

—

—

—

—

—

—

Subtract: capitalized interest

—

—

—

—

—

—

—

—

Subtract: non-controlling interest in pre-tax income of subsidiaries that have not incurred fixed charges

—

—

—

—

—

—

—

—

Earnings

$

1,073

$

11,110

$

(32,196

)

$

(19,990

)

$

(11,813

)

$

11,219

$

65,526

$

(38,936

)

Fixed Charge Data:

Interest expense and capitalized

16,104

15,698

33,585

29,439

27,286

16,245

13,657

1,255

Amortized premiums, discounts and capitalized expenses related to indebtedness

—

—

—

—

—

—

7

1,867

Estimate of the interest within rental expense

—

—

—

—

—

—

—

—

Total fixed charges

$

16,104

$

15,698

$

33,585

$

29,439

$

27,286

$

16,245

$

13,664

$

3,122

Ratio of earnings to fixed charges(2)(3)

0.1

0.7

(1.0

)

(0.7

)

(0.4

)

0.7

4.8

(12.5

)

Earnings Deficiency

$

15,031

$

4,588

$

65,781

$

49,429

$

39,099

$

5,026

$

—

$

42,058

(1)

The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. The term “fixed charges” means the sum of the following: (a) interest expenses and capitalized interest, (b) amortized premiums, discounts and capitalized expenses related to indebtedness, (c) other expenses related to indebtedness, and (d) an estimate of the interest within rental expense. The term “earnings” is the amount resulting from adding the following: (a) pre-tax income from continuing operations before adjustment for income or loss from equity investees; (b) fixed charges; (c) amortization of capitalized interest; (d) distributed income of equity investees; and (e) share of pre-tax losses of equity investees for which charges arising from guarantees are included in fixed charges; then subtracting from the total added items, the following: (a) interest capitalized and (b) the non-controlling interest in pre-tax income of subsidiaries that have not incurred fixed charges.

(2)

In 2016, 2015, 2014, and 2012, we incurred losses from operations, and as a result, our earnings were insufficient to cover our fixed charges by $49,429,000, $39,099,000, $5,026,000 and $42,058,000, respectively.

(3)

Pro forma for the six months ended June 30, 2017 and year ended 2016 shows losses from operations, and as a result, our earnings were insufficient to cover our fixed charges by $ 15,031,000 and $65,781,000, respectively.

(4)

Earnings include net realized and unrealized gains or losses. Net realized and unrealized gains or losses can vary substantially from period to period. Please refer to our annual report on Form 10 K for the year ended December 31, 2016 for additional information.

(5)

The fixed charges used for purposes of calculating the ratio of earnings to fixed charges excludes change in fair value of the our revolving credit facilities (which at the relevant times included the White Eagle and Red Falcon credit facilities), loss on extinguishment of debt and change in fair value of conversion derivative liability. For the years ended December 31, 2016, 2015, 2014 and 2013, the change in fair value of such revolving credit facilities was ($1.9 million), $12.2 million, ($5.5 million) and ($9.4 million), respectively. For the year ended December 31, 2016, 2015 and 2013, the loss on extinguishment of debt was $554,000, $8.8 million and $4.0 million, respectively. For the year ended December 31, 2014, change in fair value of conversion derivative liability was $6.8 million. Calculation for the pro forma for the six months ended June 30, 2017 and December 31, 2016 period excludes loss on extinguishment of debt of $10.0 million and $12.2 million, respectively.