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 March 31,
	2020			2019
	(In thousands, except per share data)

Net income (loss)	$	(992	)	$	746

Shares:
Basic: Weighted average common shares outstanding		7,507			7,461
Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method		–			158
Diluted: Weighted average common and common equivalent shares outstanding		7,507			7,619

Net income (loss) per common share:
Basic	$	(0.13	)	$	0.10
Diluted	$	(0.13	)	$	0.10

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 March 31, 2020 and 2019, there were 708 thousand and 540 thousand, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share. Regarding the three months ended March 31, 2020, when a net loss is reported, basic and diluted net loss per common share are calculated using the same method.