EARNINGS PER SHARE

Basic (loss) earnings per share ("EPS") is computed by dividing net (loss) income attributable to the Company by the weighted-average number of common shares outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS except that the numerator is increased to exclude charges that would not have been incurred, and the denominator is increased to include the number of additional common shares that would have been outstanding (using the if-converted and treasury stock methods), if securities containing potentially dilutive common shares (stock options and restricted stock units but excluding options to purchase fractional shares resulting from the Company's December 2010 1-for-10 reverse stock split) had been converted to common shares, and if such assumed conversion is dilutive. All common stock equivalent securities were anti-dilutive for the three months ended September 30, 2018, because the Company reported a net loss for that period.

The following is a reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted (loss) earnings per share for the three and nine months ended September 30, 2018 and 2017 (in thousands, except per share data):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2018			2017		2018		2017
Net (loss) income attributable to Heska	$	(1,670	)	$	3,083	$	2,383	$	11,023

Basic weighted-average common shares outstanding	7,289			7,139		7,194		6,985
Assumed exercise of dilutive stock options and restricted shares	—			529		626		595
Diluted weighted-average common shares outstanding	7,289			7,668		7,820		7,580

Basic (loss) earnings per share attributable to Heska	$	(0.23	)	$	0.43	$	0.33	$	1.58
Diluted (loss) earnings per share attributable to Heska	$	(0.23	)	$	0.40	$	0.30	$	1.45

The following stock options and restricted shares were excluded from the computation of diluted (loss) earnings per share because they would have been anti-dilutive (in thousands):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2018	2017	2018	2017
Stock options	675	27	190	132