Earnings (Loss) Per Share

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. For the three month periods ended March 31, 2018 and March 31, 2017, the Company had 1,926,288 and 2,236,197 securities, respectively, that were potentially dilutive in future earnings per share 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 March 31,
	2018	2017
Basic:
Weighted average shares outstanding	28,143,791	27,786,087
Diluted:
Total basic weighted average shares outstanding	28,143,791	27,786,087
Effect of dilutive securities:
Common stock options	225,971	—
Total weighted average shares outstanding assuming dilution	28,369,762	27,786,087
Shares of common stock issued from the exercise of stock options	146,765	103,855