Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Except when the effect would be anti-dilutive, diluted earnings (loss) per share is calculated based on the weighted average number of shares of common stock outstanding plus the dilutive effect of share-based awards calculated under the treasury stock method.

At the close of business on October 23, 2017, the Company effected a 1-for-10 reverse stock split of its common stock. The calculation of basic and diluted net earnings (loss) per share, as presented in the condensed consolidated statements of operations, have been determined based on a retroactive adjustment of weighted average shares outstanding for all periods presented.

On September 8, 2017, in connection with the 2017 Rights Offering and related 2017 Investment Agreement, the Company issued an aggregate of 6,666,666 shares of its common stock as adjusted for the Reverse Stock Split. See Note 11 “Related Party Transactions” for additional information.

The following is a reconciliation of weighted average basic shares to weighted average diluted shares outstanding:

	Three Months Ended				Nine Months Ended
	November 3,		October 28,		November 3,		October 28,
	2018		2017		2018		2017
Weighted-average shares—basic		11,621,012		8,610,869		11,619,059		6,166,219
Effect of dilutive equity securities		226,594		439		—		—
Weighted-average shares—diluted		11,847,606		8,611,308		11,619,059		6,166,219

Because the Company incurred a net loss for the nine months ended November 3, 2018 and October 28, 2017, weighted-average basic shares and weighted-average diluted shares outstanding are equal for these periods.

For the three months ended November 3, 2018 and October 28, 2017, 2,466 and 183,566 weighted average shares of share-based compensation, respectively, were excluded from the computation of weighted average shares for diluted earnings per share, as their effect would have been anti-dilutive.

For the nine months ended November 3, 2018 and October 28, 2017, 117,831 and 189,060 weighted average shares of share-based compensation, respectively, were excluded from the computation of weighted average shares for diluted earnings per share, as their effect would have been anti-dilutive.