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. For the three months ended June 30, 2018 and June 30, 2017, the Company had 2,012,481 and 2,251,034 securities, respectively, that were potentially dilutive in future earnings per share calculations. For the six months ended June 30, 2018 and June 30, 2017, the Company had 1,969,623 and 2,243,763 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 the Company's stock over the exercise price and other components of the treasury stock method.

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



	Three months ended June 30,		Six months ended June 30,
	2018	2017	2018	2017
Basic:
Weighted average shares outstanding	28,309,004	27,941,814	28,243,400	27,867,090
Diluted:
Total basic weighted average shares outstanding	28,309,004	27,941,814	28,243,400	27,867,090
Effect of dilutive securities:
Common stock options	235,006	—	231,032	—
Total weighted average shares outstanding assuming dilution	28,544,010	27,941,814	28,474,432	27,867,090
Shares of common stock issued from the exercise of stock options	84,705	55,953	231,470	159,808