6. Earnings Per Common Share

The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “Earnings Per Share,” using the two-class method because the Company’s unvested restricted stock is a participating security since these awards contain non-forfeitable rights to receive dividends. Under the two-class method, earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed.

Basic earnings per common share excludes dilution and is calculated by dividing earnings to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing earnings to common shares by the weighted-average number of common shares, as adjusted for the potentially dilutive effect of stock options.

The following table reconciles earnings (loss) per common share for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30, 2016			Three Months Ended June 30, 2015			Six Months Ended June 30, 2016			Six Months Ended June 30, 2015
Basic Earnings (Loss) per Common Share:
Numerator:
Net loss	$	(5,283	)	$	(4,012	)	$	(10,718	)	$	(8,162	)
Distributed earnings to common shares		—			—			—			—
Distributed earnings to participating securities		—			—			—			—
Total distributed earnings		—			—			—			—
Undistributed loss allocable to common shares		(5,283	)		(4,012	)		(10,718	)		(8,162	)
Undistributed earnings allocable to participating securities		—			—			—			—
Total undistributed loss		(5,283	)		(4,012	)		(10,718	)		(8,162	)
Loss to common shares—basic	$	(5,283	)	$	(4,012	)	$	(10,718	)	$	(8,162	)
Denominator
Weighted average common shares outstanding—basic		8,587			8,029			8,560			7,995
Basic earnings (loss) per common share	$	(0.62	)	$	(0.50	)	$	(1.25	)	$	(1.02	)

	Three Months Ended June 30, 2016			Three Months Ended June 30, 2015			Six Months Ended June 30, 2016			Six Months Ended June 30, 2015
Diluted Earnings (Loss) per Common Share:
Numerator:
Loss to common shares—basic	$	(5,283	)	$	(4,012	)	$	(10,718	)	$	(8,162	)
Undistributed earnings allocated to participating securities		—			—			—			—
Undistributed earnings reallocated to participating securities		—			—			—			—
Loss to common shares—diluted	$	(5,283	)	$	(4,012	)	$	(10,718	)	$	(8,162	)
Denominator
Weighted average common shares outstanding—basic		8,587			8,029			8,560			7,995
Dilutive effect of stock options		—			—			—			—
Weighted average common shares outstanding—dilutive		8,587			8,029			8,560			7,995
Diluted earnings (loss) per common share	$	(0.62	)	$	(0.50	)	$	(1.25	)	$	(1.02	)

There were 75 and 0 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for the three and six months ended June 30, 2016, respectively, because their exercise prices were higher than the average market price of the underlying common stock for the period.

There were 75 and 175 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for the three and six months ended June 30, 2015, respectively, because their exercise prices were higher than the average market price of the underlying common stock for the period.

There were 169 and 188 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share for the three and six months ended June 30, 2016, respectively, as the Company incurred a net loss for the periods.

There were 216 and 214 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share for the three and six months ended June 30, 2015, respectively, as the Company incurred a net loss for the periods.