Earnings Per Share

9 Months Ended

Sep. 30, 2020

Basic (loss) income per share is calculated by dividing net (loss) income by the weighted average number of common shares outstanding for the period. The Company had a loss for the nine months ended September 30, 2020 and 2019. Therefore, the effect of stock-based awards including options, restricted stock, restricted stock units and warrants outstanding at September 30, 2020 and 2019, 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 (loss) income per common share:


	Three Months Ended September 30, 2020	Three Months Ended September 30, 2019	Nine Months Ended September 30, 2020	Nine Months Ended September 30, 2019
Basic weighted-average common shares outstanding	51,001,852	50,227,590	50,765,829	50,138,835
Effect of dilutive options, performance stock units and restricted stock	—	60,714	—	—
Diluted weighted-average shares outstanding	51,001,852	50,288,304	50,765,829	50,138,835

Securities that could potentially be dilutive are excluded from the computation of diluted (loss) income 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 represents the weighted-average number of shares that could potentially dilute basic earnings per share in the future:


	Three Months Ended September 30, 2020	Three Months Ended September 30, 2019	Nine Months Ended September 30, 2020	Nine Months Ended September 30, 2019
Convertible preferred stock	21,526,522	—	7,227,883	—
Stock-based compensation awards(1):
Stock options	799,570	1,028,583	804,267	949,987
Restricted stock to non-directors	1,811,016	749,510	1,079,151	624,930

Warrants:
Private placement warrants	2,075,652	6,160,000	4,788,613	6,160,000
Public warrants	3,309,948	9,823,072	7,636,184	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.