8. Earnings Per Share

The following table presents a reconciliation of the numerators and denominators used in the basic and diluted earnings per common share computations (in thousands except share and per share amounts):



	Three Months Ended March 31,						Nine Months Ended March 31,
	2019			2018			2019			2018
Numerator
Net income (loss)	$	672		$	365		$	(1,724	)	$	(2,025	)
Income allocated to participating securities	(3		)	(5		)	—			—
Net income (loss) available to common stockholders	$	669		$	360		$	(1,724	)	$	(2,025	)
Denominator
Weighted average common shares outstanding – basic	33,600,148			33,237,552			33,510,368			33,105,174
Effect of dilutive stock options⁽¹⁾	—			14,197			—			—
Effect of dilutive restricted stock units⁽²⁾	339,929			318,122			—			—
Effect of performance-based restricted stock awards⁽³⁾	295,048			67,918			—			—
Effect of employee stock purchase plan⁽⁴⁾	6,307			4,015			—			—
Weighted average common shares outstanding – diluted	34,241,432			33,641,804			33,510,368			33,105,174

Earnings per common share – basic	$	0.02		$	0.01		$	(0.05	)	$	(0.06	)
Earnings per common share – diluted	$	0.02		$	0.01		$	(0.05	)	$	(0.06	)


(1)	At March 31, 2019 and 2018, 0 and 22,321 stock options, respectively, were outstanding. The effect of the shares that would be issued upon exercise of these options has been excluded from the calculation of diluted loss per share for the nine months ended March 31, 2019 and 2018, because those shares are anti-dilutive.

(2)

At March 31, 2019 and 2018, 354,176 and 335,869 additional shares of common stock, respectively, were issuable upon the settlement of outstanding restricted stock units. The effect of the shares that would be issued upon settlement of these restricted stock units has been excluded from the calculation of diluted loss per share for the nine months ended March 31, 2019 and 2018, because those shares are anti-dilutive.


(3)	At March 31, 2019 and 2018, 754,331 and 531,178 performance-based restricted stock awards, respectively, were outstanding. The effect of the potential vesting of these awards has been excluded from the calculation of diluted loss per share for the nine months ended March 31, 2019 and 2018, because those shares are anti-dilutive.

(4)

At March 31, 2019 and 2018, the Company included the number of shares that would be issued under its employee stock purchase plan based on the aggregate expected amount of withholdings and the average unrecognized compensation expense as assumed proceeds. The effect of these shares has been excluded from the calculation of diluted loss per share for the nine months ended March 31, 2019 and 2018, because those shares are anti-dilutive.

Unvested time-based restricted stock awards that contain nonforfeitable rights to dividends are participating securities and included in the computation of earnings per share pursuant to the two-class method. Under this method, earnings attributable to the Company are allocated between common stockholders and the participating awards, as if the awards were a second class of stock. During periods of net income, the calculation of earnings per share excludes the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. In the event of a net loss, undistributed earnings are not allocated to participating securities and the denominator excludes the dilutive impact of these securities as they do not share in the losses of the Company. During the three months ended March 31, 2019 and 2018, undistributed earnings allocated to participating securities were based on 172,839 and 462,387 time-based restricted stock awards, respectively.