16. Earnings (Loss) per Share

Basic earnings (loss) per share (“EPS” or “LPS”) is calculated by dividing net income or loss attributable to Target Hospitality by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed similarly to basic net earnings per share, except that it includes the potential dilution that could occur if dilutive securities were exercised. During periods when net losses are incurred, potential dilutive securities would be antidilutive and are excluded from the calculation of diluted loss per share for that period. Net income was recorded for three months ended March 31, 2020, while a net loss was recorded for the three months ended March 31, 2019. The following table presents basic and diluted EPS for the periods indicated below ($ in thousands, except per share amounts):


	For the Three Months Ended
	March 31,		March 31,
	2020		2019
Numerator
Net income (loss) attributable to Common Stockholders	$	3,801	$	(13,979)

Denominator
Weighted average shares outstanding - basic and diluted		95,849,854		79,589,905

Net income (loss) per share - basic and diluted	$	0.04	$	(0.18)

As discussed in Note 3, 5,015,898 shares of the 8,050,000 shares of common stock held by the Founders, were placed into escrow concurrent with the Business Combination. Upon being placed into escrow, the voting and economic rights of the shares were suspended for the period they are in escrow. Given that the Founders are not entitled to vote or participate in the economic rewards available to the other shareholders with respect to these shares, these shares are not included in the EPS or LPS calculations.

Warrants representing 16,166,650 shares of the Company’s common stock for the three months ended March 31, 2020 and 2019 were excluded from the computation of EPS and LPS because they are considered anti-dilutive as the exercise price exceeds the average market price of the common stock during the applicable periods.

As discussed in Note 18, RSUs and stock options were outstanding for the three months ended March 31, 2020. These RSUs and stock options were excluded from the computation of EPS because their effect would have been anti-dilutive.

As discussed in Note 17, the Company repurchased shares of its outstanding common stock. These shares of treasury stock have been excluded from the computation of EPS.