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, 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)	2019		2018		2017

Net income (loss) attributable to Lannett Company, Inc.	$	(272,107)	$	28,690	$	(581)

Basic weighted average common shares outstanding		37,779,812		37,127,306		36,812,524
Effect of potentially dilutive options and restricted stock awards		—		1,035,208		—
Diluted weighted average common shares outstanding		37,779,812		38,162,514		36,812,524

Earnings (loss) per common share attributable to Lannett Company, Inc.:
Basic	$	(7.20)	$	0.77	$	(0.02)
Diluted	$	(7.20)	$	0.75	$	(0.02)

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, 2019, 2018 and 2017 were 1.9 million, 3.0 million and 4.3 million, respectively.