Note 14. Earnings (Loss) Per Common Share

A dual presentation of basic and diluted earnings (loss) per common share is required on the face of the Company’s Consolidated Statement of Operations as well as a reconciliation of the computation of basic earnings per common share to diluted earnings per common share. Basic earnings (loss) per common share excludes the dilutive impact of potentially dilutive securities and is computed by dividing net income (loss) attributable to Lannett Company, Inc. by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per common share is computed using the treasury stock method and includes the effect of potential dilution from the exercise of outstanding stock options, a warrant and treats unvested restricted stock and performance-based shares as if they were vested. Potentially dilutive securities have been excluded in the weighted average number of common shares used for the calculation of earnings per share in periods of net loss because the effect of including such securities would be anti-dilutive. A reconciliation of the Company’s basic and diluted earnings (loss) per common share was as follows:

	For Fiscal Year Ended June 30,
(In thousands, except share and per share data)	2018		2017			2016

Net income (loss) attributable to Lannett Company, Inc.	$	28,690	$	(581	)	$	44,782


Basic weighted average common shares outstanding	37,127,306		36,812,524			36,442,782
Effect of potentially dilutive options and restricted stock awards	1,035,208		—			946,663

Diluted weighted average common shares outstanding	38,162,514		36,812,524			37,389,445


Earnings (loss) per common share attributable to Lannett Company, Inc.:
Basic	$	0.77	$	(0.02	)	$	1.23
Diluted	$	0.75	$	(0.02	)	$	1.20

The number of anti-dilutive shares that have been excluded in the computation of diluted earnings per share for the fiscal years ended June 30, 2018, 2017 and 2016 were 3.0 million, 4.3 million and 3.0 million, respectively.