Basic net income (loss) per share is calculated by dividing net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding during the period, without consideration for common share equivalents or the conversion of Preferred Stock. Common share equivalents consist of the incremental common shares issuable upon the exercise of stock options and vesting of restricted stock unit awards. Diluted net income (loss) per common share is calculated by dividing net income (loss) attributable to common shareholders by the fully diluted weighted-average number of common shares outstanding during the period.

Holders of Preferred Stock participate in dividends on an as-converted basis when declared on common shares. As a result, Preferred Stock is classified as a participating security and thereby requires the allocation of income that would have otherwise been available to common shareholders when calculating net income (loss) per share.

Diluted net income (loss) per share is calculated by utilizing the most dilutive result of the if-converted and two-class methods. In both methods, net income (loss) attributable to common shareholders and the weighted-average common shares outstanding are adjusted to account for the impact of the assumed issuance of potential common shares that are dilutive, subject to dilution sequencing rules.

The following table presents the components and calculations of basic and diluted net income (loss) per share for each period presented (in thousands, except share and per share amounts):

	Three Months Ended December 31,
	2019			2018
Net income (loss)	$	(23,410	)	$	(893	)
Dividends on Preferred Stock		6,000			6,000
Net income (loss) attributable to common shareholders	$	(29,410	)	$	(6,893	)
Undistributed income allocated to participating securities		-			-
Net income (loss) attributable to common shareholders - basic and diluted	$	(29,410	)	$	(6,893	)

Weighted-average common shares outstanding - basic		68,667,943			68,248,020
Effect of common share equivalents		-			-
Weighted-average common shares outstanding - diluted		68,667,943			68,248,020

Net income (loss) per share - basic	$	(0.43	)	$	(0.10	)
Net income (loss) per share - diluted	$	(0.43	)	$	(0.10	)

The following table includes the number of shares that may be dilutive common shares in the future. These shares were not included in the computation of diluted net income (loss) per share because the effect was either anti-dilutive or the requisite performance conditions were not met:

	Three Months Ended December 31,
	2019		2018
Stock options		1,911,501		1,554,518
Restricted stock units		400,914		318,229
Preferred Stock		9,694,619		9,694,619