(9) Net Income (Loss) Per Common Share

The calculation of basic and diluted income (loss) per common share and common share equivalents is as follows (in thousands except for per share data):

	Three Months Ended March 31,
	2018		2017
Basic net income (loss) per common share
Net income (loss)	$	772	$	(1,441	)
Less: Preferred stock dividends		—		(7	)
Net income (loss) applicable to common stock	$	772	$	(1,448	)
Basic weighted average number of common shares outstanding		10,943		10,803
Basic net income (loss) per common share	$	0.07	$	(0.13	)
Diluted income (loss) per common share
Net income (loss) applicable to common stock	$	772	$	(1,448	)
Add: Preferred stock dividends		—		7
Net income (loss) applicable to dilutive common stock	$	772	$	(1,441	)
Basic weighted average number of common shares outstanding		10,943		10,803
Effect of dilutive securities
Dilutive stock awards		1,344		—
Diluted weighted average number of common shares outstanding		12,287		10,803
Diluted net income (loss) per common share	$	0.06	$	(0.13	)

Basic net income (loss) per common share is computed by dividing the net income (loss), less preferred dividends through March 31, 2018, by the weighted-average number of shares of common stock outstanding during a period. The diluted income (loss) per common share calculation gives effect to dilutive options, convertible preferred stock, and other potential dilutive common stock including restricted shares of common stock outstanding during the period. Diluted net income (loss) per share is based on the treasury stock method and includes the effect from potential issuance of common stock, such as shares issuable pursuant to the exercise of stock options, assuming the exercise of all in-the-money stock options. Common share equivalents have been excluded where their inclusion would be anti-dilutive.

Shares to be issued upon the exercise of the outstanding options, performance-based restricted stock units, convertible preferred stock, and selected restricted shares of common stock excluded from the income per share calculation amounted to 0.7 million and 2.3 million in each of the three-month periods ended March 31, 2018 and 2017, respectively, because the awards were anti-dilutive.