7. NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO COMMON STOCK

Net (loss) income per share attributable to common stock is calculated using the two-class method. The two-class method is an allocation method of calculating (loss) earnings per share when a company’s capital structure includes participating securities that have rights to undistributed earnings. The Company’s employees and officers that hold unvested restricted stock are entitled to dividends when the Company pays dividends.

The Company’s basic net (loss) income per share attributable to common stock is computed by reducing the Company’s net (loss) income by the net (loss) income allocable to unvested restricted stockholders that have a right to participate in earnings. The Company’s employees and officers that hold unvested restricted stock do not participate in losses because they are not contractually obligated to do so. The undistributed earnings are allocated based on the relative percentage of the weighted average unvested restricted stock awards. The basic net (loss) income per share attributable to common stock is computed by dividing the net (loss) income attributable to common stock by the weighted average shares outstanding. The Company’s dilutive net (loss) income per share attributable to common stock is computed by adjusting basic net (loss) income per share attributable to common stock by diluted (loss) income allocable to unvested restricted stock divided by weighted average diluted shares outstanding. A reconciliation of the basic and diluted loss per share attributable to common stock is as follows:


	Three Months Ended December 31,
	2014			2013
	(in 000’s)
Net loss	$	(4,765	)	$	(2,897	)
Income allocable to unvested restricted stock		(8	)		—

Basic loss attributable to common stock	$	(4,773	)	$	(2,897	)

Reallocation of participating earnings		—			—

Diluted loss attributable to common stock	$	(4,773	)	$	(2,897	)

Weighted average common shares outstanding:
Basic		7,965,757			7,956,215
Dilutive common stock options and restricted stock units		—			—

Diluted		7,965,757			7,956,215

Basic loss attributable to a share of common stock	$	(.60	)	$	(0.36	)

Diluted loss attributable to a share of common stock	$	(.60	)	$	(0.36	)

The Company had a net loss in the three months ended December 31, 2014 and 2013. As a result, all stock options and restricted stock units were anti-dilutive and excluded from weighted average shares used in determining the loss attributable to share of common stock for the respective periods.

The following weighted average numbers of certain securities have been excluded from the calculation of diluted loss per share attributable to common stock, as their effect would be anti-dilutive:


	Three Months Ended December 31,
	2014		2013
Stock options		91,150		92,476
Restricted stock units		37,737		8,647

Total		128,887		101,123

Shares of 103,500 unvested restricted stock at December 31, 2014 and 2013 are included in common stock outstanding as such shares have a nonforfeitable right to participate in any dividends that might be declared and have the right to vote.