EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing the Company’s net income (loss) by the weighted average number of shares outstanding during the period. When the effects are not anti-dilutive, diluted earnings (loss) per share is computed by dividing the Company’s net income (loss) by the weighted average number of shares outstanding and the impact of all dilutive potential common shares, primarily stock options "in-the-money", unvested restricted stock and unvested restricted stock units. The dilutive impact of stock options, unvested restricted stock, and unvested restricted stock units is determined by applying the "treasury stock" method. Performance-based restricted stock awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions: (i) are satisfied prior to the end of the reporting period; or (ii) would be satisfied if the end of the reporting period were the end of the related performance period and the result would be dilutive under the treasury stock method. Stock awards subject to vesting or exercisability based on the achievement of market conditions are included in the computation of diluted earnings per share only when the market conditions are met.

A reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share calculations for the three and nine months ended September 30, 2017 and 2016 were as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Earnings (loss) per share ("EPS"):
EPS - basic and diluted:
Income (loss) from continuing operations	$	(0.03	)	$	(0.06	)	$	(0.03	)	$	(0.26	)
Income (loss) from discontinued operations	—			—			—			0.01
Net income (loss)	$	(0.03	)	$	(0.06	)	$	(0.03	)	$	(0.25	)
EPS numerator - basic and diluted:
Income (loss) from continuing operations	$	(832	)	$	(1,908	)	$	(902	)	$	(8,825	)
Income (loss) from discontinued operations	(16		)	35			(34		)	327
Net income (loss)	$	(848	)	$	(1,873	)	$	(936	)	$	(8,498	)
EPS denominator (in thousands):
Weighted average common stock outstanding - basic	32,151			33,572			32,120			34,121
Common stock equivalents: stock options and other stock-based awards (a)	—			—			—			—
Weighted average number of common stock outstanding - diluted	32,151			33,572			32,120			34,121

(a)

The diluted weighted average number of shares of common stock outstanding did not differ from the basic weighted average number of shares of common stock outstanding because the effects of any potential common stock equivalents (see Note 6 for further details on outstanding stock options, unvested restricted stock units and unvested restricted stock) were anti-dilutive and therefore not included in the calculation of the denominator of dilutive earnings per share.

The weighted average number of shares outstanding used in the computation of diluted net income (loss) per share for the three and nine months ended September 30, 2017 and 2016 did not include the effect of the following potentially outstanding shares of common stock because the effect would have been anti-dilutive:



	Three Months Ended September 30,		Nine Months Ended September 30,
	2017	2016	2017	2016
Unvested restricted stock	—	150,000	—	150,000
Unvested restricted stock units	1,088,933	50,769	1,088,933	50,769
Stock options	100,000	98,500	100,000	98,500
Total	1,188,933	299,269	1,188,933	299,269