E) Computation of Earnings per Share. Basic earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For the purposes of this calculation, stock options are considered common stock equivalents in periods in which they have a dilutive effect. Stock options that are anti-dilutive are excluded from the calculation. Potential common stock equivalents of 68,681 for the three months ended March 31, 2020 were not included in the per share calculation for diluted earnings per share, because we had a net loss and the effect of their inclusion would be anti-dilutive.

Net income (loss) per share is calculated as follows (in thousands, except per share data):


	Three Months Ended
	March 31,
	2020		2019

Net income (loss)	$	(1,060)	$	228

Shares outstanding:
Weighted-average common shares outstanding		21,522		21,565
Additional dilutive common stock equivalents		—		17
Diluted shares outstanding		21,522		21,582

Net income (loss) per share – basic	$	(0.05)	$	0.01
Net income (loss) per share - diluted	$	(0.05)	$	0.01