Earnings Per Share of Common Stock

Basic net income (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per common share reflects the maximum dilution that would have resulted from the assumed exercise and share repurchase related to dilutive stock options and is computed by dividing net income (loss) by the assumed weighted average number of common shares outstanding.

We are required to present earnings per share, or EPS, utilizing the two class method because we had outstanding, non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, which are considered participating securities.

Basic and diluted earnings per share computations for the Company’s reported net income (loss) attributable to common stockholders are as follows:



	For the three months ended						For the nine months ended
	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
	(Amounts in thousands except per share data)
Income (loss) from continuing operations	$	431		$	932		$	(1,288	)	$	1,222
Loss from discontinued operations	(428		)	(237		)	(503		)	(141		)
Net income (loss)	3			695			(1,791		)	1,081
Less: net income attributable to nonvested common stock	—			31			—			46
Net income (loss) attributable to common stockholders	$	3		$	664		$	(1,791	)	$	1,035

Weighted average total shares outstanding – basic	4,006			3,921			3,811			3,876
Less: weighted average non-vested shares outstanding	164			177			—			163
Weighted average number of common shares outstanding – basic	3,842			3,744			3,811			3,713
Potential common shares from non-vested stock awards and the assumed exercise of stock options	88			75			—			98
Weighted average common shares outstanding – diluted	3,930			3,819			3,811			3,811

Net income (loss) from continuing operations per share – basic	$	0.11		$	0.24		$	(0.34	)	$	0.32
Net loss from discontinued operations per share – basic	$	(0.11	)	$	(0.06	)	$	(0.13	)	$	(0.04	)
Net income (loss) from continuing operations per share – diluted	$	0.11		$	0.24		$	(0.34	)	$	0.31
Net loss from discontinued operations per share – diluted	$	(0.11	)	$	(0.06	)	$	(0.13	)	$	(0.04	)

Non-vested restricted stock awards of 168,000 shares were excluded from the diluted loss per share calculation for the nine months ended June 30, 2018, as there was a net loss and their inclusion would have been anti-dilutive.