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Earnings Per Common Share

Basic earnings per common share is computed by dividing the net income by the weighted average number of shares of common stock outstanding during the period. Restricted stock awards and restricted stock units (collectively, nonvested shares) are not considered to be outstanding shares until the service or performance vesting period has been completed.

The diluted earnings per share calculation would normally involve adjusting both the denominator and numerator as described here if the effect is dilutive. The denominator would include both the weighted average number of shares of common stock outstanding and common stock equivalents. Dilutive common stock equivalents potentially include stock options and nonvested shares using the treasury stock method and shares issuable under the employee stock purchase plan.

For purposes of calculating diluted earnings per common share, the denominator includes both the weighted-average number of shares of common stock outstanding and the number of common stock equivalents if the inclusion of such common stock equivalents is dilutive. Dilutive common stock equivalents potentially include stock options and nonvested shares using the treasury stock method and shares issuable under the employee stock purchase plan (ESPP). Earnings per common share information is as follows (in thousands, except per share amounts) for the three months ended March 31, 2018 and 2017:

	Three months ended March 31,
	2018		2017
(Loss) Earnings Per Common Share – Basic:
Net (loss) income	$	(312)	$	645

Weighted-average common shares outstanding		44,215		44,215

Basic (loss) earnings per share	$	(0.01)	$	0.01

(Loss) Earnings Per Common Share – Diluted:
Net (loss) income	$	(312)	$	645

Weighted-average common shares outstanding		44,215		44,215
Weighted-average incremental shares related to vesting of nonvested shares		-		-
Weighted-average common shares outstanding and common share equivalents		44,215		44,215

Diluted (loss) earnings per share	$	(0.01)	$	0.01

At March 31, 2018 and 2017, there were 41,787 and 90,787 potentially dilutive securities outstanding that have been excluded from the calculation of dilutive weighted average shares outstanding, as they would be anti-dilutive.