ASC Topic 260, “Earnings Per Share”, provides that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. The Company’s outstanding non-vested restricted stock awards are participating securities. Accordingly, earnings per common share are computed using the two-class method. The impact of the Company’s Warrant issued to Wilks in March 2017 was not included in the computation of diluted loss per share because the average price for our common stock was less than the strike price of the Warrant and, therefore, the Warrant was not dilutive for 2018 or 2017. The Warrant entitles the holder thereof to purchase up to 523,022 shares of the Common Stock, at an exercise price of $14.91 per share, payable in cash. Refer to Note 4.

The following table sets forth the computation of basic and diluted loss per share under the two-class method:

	2018			2017
Numerator for basic and diluted loss per share:
Net loss	$	(75,433	)	$	(253,116	)
Effect of reallocating undistributed earnings of participating securities		—			—
Net loss available under the two-class method	$	(75,433	)	$	(253,116	)
Denominator:
Denominator for basic loss per share—weighted-average shares		27,015,994			26,664,247
Effect of dilutive potential common shares		—			—
Denominator for diluted loss per share—adjusted weighted-average shares		27,015,994			26,664,247
Basic loss per share	$	(2.79	)	$	(9.49	)
Diluted loss per share	$	(2.79	)	$	(9.49	)