Net Income (Loss) per Share

The Company applies the two-class method to calculate and present net income (loss) per share. The Company's non-vested share awards and Series B Preferred Stock issued to BKC contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing net income (loss) per share pursuant to the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared (whether paid or unpaid) and the remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. As the Company incurred a net loss for the three months and nine months ended September 29, 2019, and losses are not allocated to participating securities under the two-class method, such method is not applicable for the aforementioned interim reporting periods.

Basic net income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted net income (loss) per share reflects additional shares of common stock outstanding, where applicable, calculated using the treasury stock method or the two-class method.

The following table sets forth the calculation of basic and diluted net income (loss) per share:



	Three Months Ended						Nine Months Ended
	September 29, 2019			September 30, 2018			September 29, 2019			September 30, 2018
Basic net income (loss) per share:
Net income (loss)	$	(6,812	)	$	3,611		$	(22,013	)	$	8,297
Less: Income attributable to non-vested shares	—			(63		)	—			(147		)
Less: Income attributable to preferred stock	—			(740		)	—			(1,701		)
Net income (loss) available to common stockholders	$	(6,812	)	$	2,808		$	(22,013	)	$	6,449
Weighted average common shares outstanding	45,947,413			35,735,680			41,014,635			35,707,245
Basic net income (loss) per share	$	(0.15	)	$	0.08		$	(0.54	)	$	0.18
Diluted net income (loss) per share:
Net income (loss)	$	(6,812	)	$	3,611		$	(22,013	)	$	8,297
Shares used in computing basic net loss per share	45,947,413			35,735,680			41,014,635			35,707,245
Dilutive effect of preferred stock and non-vested shares	—			9,674,876			—			9,586,010
Shares used in computing diluted net loss per share	45,947,413			45,410,556			41,014,635			45,293,255
Diluted net income (loss) per share	$	(0.15	)	$	0.08		$	(0.54	)	$	0.18
Shares excluded from diluted net income (loss) per share computations (1)	9,665,597			—			12,138,687			—

(1) Shares issuable upon conversion of preferred stock and non-vested shares were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive.