The following table sets forth the computation of basic and diluted earnings (loss) per share:

	Quarter Ended						Nine Months Ended
(Dollars and shares in thousands, except per share amounts)	September 29,			September 30,			September 29,			September 30,
	2019			2018			2019			2018
Numerator:
Income (loss) from continuing operations, net of tax	$	837		$	(515	)	$	6,970		$	3,404
Loss from discontinued operations, net		(66	)		(118	)		(183	)		(339	)
Net income (loss)	$	771		$	(633	)	$	6,787		$	3,065
Denominator:
Weighted average shares (denominator for basic earnings (loss) per share)		14,695			14,695			14,695			14,695
Effect of dilutive securities		113			-			51			224
Adjusted weighted average shares and assumed conversions (denominator for diluted earnings (loss) per share)		14,808			14,695			14,746			14,919

Basic earnings (loss) per share:
Income (loss) from continuing operations, net of tax	$	0.06		$	(0.04	)	$	0.47		$	0.23
Loss from discontinued operations, net		(0.00	)		(0.01	)		(0.01	)		(0.02	)
Basic earnings (loss) per share	$	0.05		$	(0.04	)	$	0.46		$	0.21
Diluted earnings (loss) per share:
Income (loss) from continuing operations, net of tax	$	0.06		$	(0.04	)	$	0.47		$	0.23
Loss from discontinued operations, net		(0.00	)		(0.01	)		(0.01	)		(0.02	)
Diluted earnings (loss) per share	$	0.05		$	(0.04	)	$	0.46		$	0.21

Note: Per share amounts may not sum due to rounding.

Basic earnings (loss) per share of common stock is computed by dividing net income (loss) by the weighted average number of shares outstanding for the reporting period. Diluted earnings (loss) per share of common stock gives effect during the reporting period to all dilutive potential shares outstanding resulting from share-based compensation awards and additional shares from the assumed exercise of any common stock equivalents, if dilutive. We incurred a net loss for the quarter ended September 30, 2018, and therefore diluted shares outstanding equaled basic shares outstanding for the third quarter of 2018.

The J. Alexander’s Holdings, LLC Class B Units are considered common stock equivalents, and the number of additional shares of common stock related to these Class B Units is calculated using the if-converted method. The 833,346 Class B Units associated with management’s profits interest awards are considered to be antidilutive as of and for the quarter and nine-month period ended September 29, 2019 and, therefore, have been excluded from the diluted earnings (loss) per share calculations. However, management’s profits interest awards were considered dilutive for the nine-month period ended September 30, 2018 resulting in an additional 4,959 shares included in the diluted calculation above for the aforementioned period. Similarly, the now cancelled and forfeited Black Knight profits interest Class B Units outstanding as of September 30, 2018 were considered dilutive, and the impact on the diluted earnings (loss) per share calculation for the nine-month period then ended was 173,484.

The number of additional shares of common stock related to stock option awards is calculated using the treasury stock method, if dilutive. There were 1,495,750 stock option awards outstanding as of September 29, 2019 and September 30, 2018. The dilutive impact of these awards on the number of weighted average shares in the diluted earnings (loss) per share calculation was 102,490 and 47,446 for the quarter and nine-month period ended September 29, 2019, respectively. The awards outstanding as of September 30, 2018 were also considered dilutive, and the impact on the number of weighted average shares in the diluted earnings (loss) per share calculation was 45,082 for the nine-month period then ended.

On August 9, 2019, the Company granted 264,000 restricted share awards and 52,500 performance share awards to members of its board of directors as well as certain employees of the Company under its Amended and Restated 2015 Equity Incentive Plan. The shares were registered under the Company’s Registration Statement on Form S-8, filed with the SEC on August 9, 2019. Restricted share awards subject to only a service condition are not regarded as outstanding for basic earnings per share calculation purposes until they are vested, and any potential dilutive impact of unvested restricted share awards is calculated using the treasury stock method. Performance share awards are regarded as contingently issuable common shares and are included in the weighted average shares outstanding for basic earnings per share calculation purposes as of the beginning of the period in which the performance condition has been satisfied and the awards have vested. For diluted earnings per share calculation purposes under the treasury stock method, such awards are included in the number of weighted average shares outstanding as of the beginning of the period in which the performance condition has been satisfied, if dilutive. The performance condition associated with the performance share awards had not been met as of September 29, 2019, and, therefore, any dilutive impact on the earnings per share calculation of these awards was not considered. However, the unvested restricted share awards subject to only a service condition were considered dilutive for the quarter and nine-month period ended September 29, 2019, and the impact on the number of weighted average shares in the diluted earnings per share calculation was 10,763 and 3,588, respectively.