Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2016

Basic earnings (loss) per share are based on the weighted average number of common shares outstanding during each period. Diluted earnings per share are based on the weighted average number of common shares outstanding and the effect of all dilutive common stock equivalents during each period. The exercise price for certain stock options awarded by the Company exceeds the average market price of the Company's common stock. Such stock options are antidilutive and are not included in the computation of earnings (loss) per share. In the three months ended September 30, 2016, 1,193 of dilutive common stock equivalents were included in the calculation and at September 30, 2015, no potential common stock equivalents were included as the effect of such would be anti-dilutive. For the nine months ended September 30, 2016 and 2015, no potential common stock equivalents were included as the effect of such would be anti-dilutive. For the three month periods ended September 30, 2016 and September 30, 2015, the Company had 2,540,826 and 2,015,415 securities, respectively, that were potentially dilutive in future earnings per share calculations. For the nine months ended September 30, 2016 and September 30, 2015, the Company had 2,340,874 and 2,006,744 securities, respectively, that were potentially dilutive in future earnings calculations. Such dilution will be dependent on the excess of the market price of our stock over the exercise price and other components of the treasury stock method.

The following table reconciles the denominators used in the computations of both basic and diluted earnings (loss) per share:



	Three months ended September 30,		Nine months ended September 30,
	2016	2015	2016	2015
Basic:
Weighted average shares outstanding	27,462,794	27,243,128	27,485,730	27,397,342
Diluted:
Total basic weighted average shares outstanding	27,462,794	27,243,128	27,485,730	27,397,342
Effect of dilutive securities:
Common stock options	1,193	—	—	—
Total weighted average shares outstanding assuming dilution	27,463,987	27,243,128	27,485,730	27,397,342
Anti-dilutive stock options	2,491,502	1,077,816	2,304,701	959,631
Shares of common stock issued from the exercise of stock options	—	—	3,924	3,970