7. Earnings per share

The following table sets forth the reconciliation of basic weighted average shares outstanding and diluted weighted average shares outstanding:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(In thousands, except per share data)


Net income	$	384	$	2,574	$	1,316	$	4,464

Shares:
Basic: Weighted average common shares outstanding		7,470		7,413		7,464		7,449
Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method		283		345		194		325
Diluted: Weighted average common and common equivalent shares outstanding		7,753		7,758		7,658		7,774

Net income per common share:
Basic	$	0.05	$	0.35	$	0.18	$	0.60
Diluted	$	0.05	$	0.33	$	0.17	$	0.57

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options and restricted stock units, when the average market price of the common stock is lower than the exercise price of the related stock award during the period, as the inclusion of these stock awards in the computation of diluted earnings would be anti-dilutive. For the three months ended September 30, 2019 and 2018, there were 326 thousand and 147 thousand, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share. For the nine months ended September 30, 2019 and 2018, there were 462 thousand and 149 thousand, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share.