14.Earnings (Loss) Per Share

Basic earnings (loss) per share is based on the weighted average number of common shares outstanding during each period. Diluted earnings (loss) per share is based on the weighted average number of common shares outstanding as well as the effect of all dilutive common stock equivalents during each period net income is generated. 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 September 30, 2019 and September 30, 2018, the Company had 1,614,192 and 1,981,879 securities, respectively, that were potentially dilutive in future earnings per share calculations. For the nine months ended September 30, 2019 and September 30, 2018, the Company had 1,671,040 and 1,973,753 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 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,
	2019	2018	2019	2018
Basic:
Weighted average shares outstanding	29,544,288	28,490,530	29,240,979	28,421,850
Diluted:
Total basic weighted average shares outstanding	29,544,288	28,490,530	29,240,979	28,421,850
Effect of dilutive securities:
Common stock options	2,897	—	—	—
Total weighted average shares outstanding assuming dilution	29,547,185	28,490,530	29,240,979	28,421,850