5 - NET (LOSS) EARNINGS PER SHARE

The computation of basic net (loss) earnings per share is based on the weighted-average number of common shares outstanding during the reporting period. The computation of diluted net (loss) earnings per share assumes the vesting of nonvested stock awards and the exercise of stock options (refer to Note 15 — Stock-Based Compensation), for which the assumed proceeds upon vesting are deemed to be the amount of compensation cost attributable to future services and are not yet recognized using the treasury stock method, to the extent dilutive. There were 258,084 restricted stock units and 496,148 stock options excluded from the computation of diluted net loss per share during the three and nine months ended September 30, 2019 because they were anti-dilutive. There were no anti-dilutive stock options, restricted stock or restricted stock units excluded from the computation of diluted net earnings per share during the three months ended September 30, 2018. There were 253,438 shares of restricted stock and restricted stock units and 255,608 stock options excluded from the computation of diluted net loss per share during the nine months ended September 30, 2018 because they were anti-dilutive (refer to Note 15 — Stock-Based Compensation).

The Company’s diluted net (loss) earnings per share will also reflect the assumed conversion of the equity warrants issued when the Company emerged from bankruptcy on July 9, 2014 (the “Effective Date”) and MIP Warrants issued by the Company (refer to Note 15 — Stock-Based Compensation) if the impact is dilutive under the treasury stock method. The equity warrants have a 7-year term that commenced on the day following the Effective Date and are exercisable for one tenth of a share of the Company’s common stock. There were no unvested MIP Warrants and 3,936,761 equity warrants excluded from the computation of diluted net (loss) earnings per share during the three and nine months ended September 30, 2019 and 2018 because they were anti-dilutive.

The components of the denominator for the calculation of basic and diluted net (loss) earnings per share are as follows:


	For the Three Months Ended		For the Nine Months Ended
	September 30,		September 30,
	2019	2018	2019	2018

Common shares outstanding, basic:
Weighted-average common shares outstanding, basic	41,749,200	41,618,187	41,739,287	37,263,200

Common shares outstanding, diluted:
Weighted-average common shares outstanding, basic	41,749,200	41,618,187	41,739,287	37,263,200

Dilutive effect of warrants	—	—	—	—

Dilutive effect of stock options	—	31,965	—	—

Dilutive effect of restricted stock awards	—	170,856	—	—

Weighted-average common shares outstanding, diluted	41,749,200	41,821,008	41,739,287	37,263,200