6. Earnings (Loss) Per Common Share

The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “Earnings Per Share,” using the two-class method because the Company’s unvested restricted stock is a participating security since these awards contain non-forfeitable rights to receive dividends. Under the two-class method, earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed.

Basic earnings per common share excludes dilution and is calculated by dividing earnings to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing earnings to common shares by the weighted-average number of common shares, as adjusted for the potentially dilutive effect of stock options. The following table reconciles earnings (loss) per common share for the three- and nine-month periods ended September 30, 2015 and 2014:


	Three Months Ended September 30, 2015			Three Months Ended September 30, 2014			Nine Months Ended September 30, 2015			Nine Months Ended September 30, 2014
Basic Earnings (Loss) per Common Share:
*Numerator:*
Net loss	$	(4,469	)	$	(1,985	)	$	(12,631	)	$	(6,651	)
Distributed earnings to common shares		—			—			—			1,553
Distributed earnings to participating securities		—			—			—			101

Total distributed earnings		—			—			—			1,654
Undistributed loss allocable to common shares		(4,469	)		(1,985	)		(12,631	)		(8,305	)
Undistributed earnings allocable to participating securities		—			—			—			—
Total undistributed loss		(4,469	)		(1,985	)		(12,631	)		(8,305	)

Loss to common shares—basic	$	(4,469	)	$	(1,985	)	$	(12,631	)	$	(6,752	)
*Denominator*
Weighted average common shares outstanding—basic		8,309			7,176			8,101			7,097
Basic earnings (loss) per common share	$	(0.54	)	$	(0.28	)	$	(1.56	)	$	(0.95	)


	Three Months Ended September 30, 2015			Three Months Ended September 30, 2014			Nine Months Ended September 30, 2015			Nine Months Ended September 30, 2014
Diluted Earnings (Loss) per Common Share:
*Numerator:*
Loss to common shares—basic	$	(4,469	)	$	(1,985	)	$	(12,631	)	$	(6,752	)
Undistributed earnings allocated to participating securities		—			—			—			—
Undistributed earnings reallocated to participating securities		—			—			—			—

Loss to common shares—diluted	$	(4,469	)	$	(1,985	)	$	(12,631	)	$	(6,752	)
*Denominator*
Weighted average common shares outstanding—basic		8,309			7,176			8,101			7,097
Dilutive effect of stock options		—			—			—			—

Weighted average common shares outstanding—dilutive		8,309			7,176			8,101			7,097
Diluted earnings (loss) per common share	$	(0.54	)	$	(0.28	)	$	(1.56	)	$	(0.95	)

There were 272 and 234 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for the three- and nine-month periods ended September 30, 2015, respectively, as the Company incurred a net loss during the periods.

There were 218 and 226 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for the three- and nine-month periods ended September 30, 2014, respectively, as the Company incurred a net loss during the periods.