Earnings Per Share

9 Months Ended

Sep. 30, 2019

Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The Company had a loss for the nine months ended September 30, 2019 and 2018. Therefore, the effect of stock-based awards including options, restricted stock, restricted stock units, and warrants outstanding at September 30, 2019 and September 30, 2018, respectively, have not been included in the computation of diluted loss per share because their inclusion would have been anti-dilutive.

The following is a reconciliation of the weighted-average common shares outstanding used for the computation of basic and diluted net income (loss) per common share:


	Three Months Ended September 30, 2019	Three Months Ended September 30, 2018	Nine Months Ended September 30, 2019	Nine Months Ended September 30, 2018
Basic weighted-average common shares outstanding	50,227,590	49,853,181	50,138,835	49,671,648
Effect of dilutive options, performance stock units and restricted stock	60,714	456,798	—	—
Diluted weighted-average shares outstanding	50,288,304	50,309,979	50,138,835	49,671,648

Securities that could potentially be dilutive are excluded from the computation of diluted earnings (loss) per share when a loss from continuing operations exists, when the exercise price exceeds the average closing price of the Company's common stock during the period, or for contingently issued shares, if the contingency is not met at the end of the reporting period, because their inclusion would result in an anti-dilutive effect on per share amounts.

The following represent the number of shares that could potentially dilute basic earnings per share in the future:


	Three Months Ended September 30, 2019	Three Months Ended September 30, 2018	Nine Months Ended September 30, 2019	Nine Months Ended September 30, 2018
Stock-based compensation awards⁽¹⁾:
Stock options	1,028,583	322,158	949,987	322,158
Restricted stock to non-directors	749,510	336,286	624,930	278,289
Restricted stock to directors	—	84,427	—	72,655
Warrants:
Private placement warrants	6,160,000	6,160,000	6,160,000	6,160,000
Public warrants	9,823,072	9,823,072	9,823,072	9,823,072

(1) SARs and Phantom Shares are payable in cash so will have no impact on number of shares

Warrants and options are considered anti-dilutive and excluded when the exercise price exceeds the average market value of the Company’s common stock price during the applicable period.