Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2017

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, 2017, no potential common stock equivalents were included as the effect of such would be anti-dilutive. In the three months ended September 30, 2016, 1,193 of dilutive common stock equivalents were included in the calculation. For the nine months ended September 30, 2017 and 2016, no potential common stock equivalents were included as the effect of such would be anti-dilutive. For the three month periods ended September 30, 2017 and September 30, 2016, the Company had 2,364,018 and 2,540,826 securities, respectively, that were potentially dilutive in future earnings per share calculations. For the nine months ended September 30, 2017 and September 30, 2016, the Company had 2,281,805 and 2,340,874 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,
	2017	2016	2017	2016
Basic:
Weighted average shares outstanding	27,950,829	27,462,794	27,980,074	27,485,730
Diluted:
Total basic weighted average shares outstanding	27,950,829	27,462,794	27,980,074	27,485,730
Effect of dilutive securities:
Common stock options	—	1,193	—	—
Total weighted average shares outstanding assuming dilution	27,950,829	27,463,987	27,980,074	27,485,730
Anti-dilutive stock options	—	2,491,502	—	2,304,701
Shares of common stock issued from the exercise of stock options	13,710	—	173,518	3,924