The Company applies the two-class method to calculate and present net income (loss) per share. Certain of the Company's restricted (non-vested) share awards contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing net income (loss) per share pursuant to the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared (whether paid or unpaid) and the remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. As the Company incurred a net loss for the nine months ended June 30, 2017 and losses are not allocated to participating securities under the two-class method, such method is not applicable for the aforementioned interim reporting period.

Basic earnings per common share are calculated by dividing income available to common stockholders by the weighted average number of shares outstanding during each period. Diluted earnings per common share add to the denominator incremental shares resulting from the assumed exercise of all potentially dilutive stock options, as well as restricted stock and restricted stock units. Options, restricted stock and restricted stock units are primarily held by directors, officers and certain employees.

A summary of shares used in the earnings per share (“EPS”) calculations follows:



	Three Months Ended						Nine Months Ended
Earnings Per Share	June 30, 2017			July 1, 2016			June 30, 2017			July 1, 2016
Basic net income (loss) per share:
Net income (loss)	$	806		$	1,605		$	(674	)	$	4,610
Less: Income attributable to non-vested shares	(10		)	(18		)	—			(52		)
Net income (loss) available to common stockholders	$	796		$	1,587		$	(674	)	$	4,558

Weighted average common shares outstanding	10,193,200			10,211,347			10,176,626			10,210,805

Basic net income (loss) per share	$	0.08		$	0.16		$	(0.07	)	$	0.45

Diluted net income (loss) per share:
Net income (loss)	$	806		$	1,605		$	(674	)	$	4,610

Shares used in computing basic net income (loss) per share	10,193,200			10,211,347			10,176,626			10,210,805
Dilutive effect of non-vested shares	—			—			—			—
Shares used in computing diluted net income (loss) per share	10,193,200			10,211,347			10,176,626			10,210,805

Diluted net income (loss) per share	$	0.08		$	0.16		$	(0.07	)	$	0.45

The diluted weighted average share calculations do not include the following securities, which are not dilutive to the EPS calculations.

Three Months Ended

Nine Months Ended

June 30,
2017

July 1,
2016

June 30,
2017

July 1,
2016

Anti-dilutive shares excluded

1,147,086

940,354

1,147,086

940,354