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, 2019 and 2018 were as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
^(a)	2019		2018				2019				2018
Earnings (loss) per share ("EPS"):
EPS - basic:
Earnings (loss) per share from continuing operations	$	0.11	$	(0.25	)		$	(0.74	)		$	(1.55	)
Earnings (loss) per share from discontinued operations	0.01		(0.01		)		(0.04		)		4.14
Earnings (loss) per share	$	0.12	$	(0.26	)		$	(0.77	)		$	2.59
EPS - diluted:
Earnings (loss) per share from continuing operations	$	0.11	$	(0.25	)		$	(0.74	)		$	(1.55	)
Earnings (loss) per share from discontinued operations	0.01		(0.01		)		(0.04		)		4.14
Earnings (loss) per share	$	0.12	$	(0.26	)		$	(0.77	)		$	2.59
EPS numerator - basic and diluted:
Income (loss) from continuing operations	$	346	$	(823	)		$	(2,325	)		$	(5,073	)
Income (loss) from discontinued operations	18		(47		)		(113		)		13,560
Net income (loss)	$	364	$	(870	)		$	(2,438	)		$	8,487
EPS denominator (in thousands):
Weighted average common stock outstanding - basic	3,082		3,310				3,150				3,275
Common stock equivalents: stock options and restricted stock units	36		—			(b)	—			(b)	—			(b)
Weighted average number of common stock outstanding - diluted	3,118		3,310				3,150				3,275


(a)	Earnings per share and weighted average shares outstanding for all periods presented reflect the Company's 1-for-10 reverse stock split, which was effective June 10, 2019.

(b)

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 and unvested restricted stock units) 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, 2019 and 2018 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,
	2019	2018	2019	2018
Unvested restricted stock units	—	57,773	66,933	57,773
Stock options	5,000	10,000	5,000	10,000
Total	5,000	67,773	71,933	67,773