Earnings (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding during the period. The weighted-average number shares of common stock outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. These unvested restricted shares, although classified as issued and outstanding at September 30, 2015 and 2014, are considered contingently returnable until the restrictions lapse and will not be included in the basic earnings per share calculation until the shares are vested. Unvested shares of our restricted stock do not contain non-forfeitable rights to dividends and dividend equivalents. Unvested restricted stock units are not included in calculations of basic net income (loss) per share, as they are not considered issued and outstanding at time of grant.

Diluted net income (loss) per share includes the effect of all potentially dilutive securities on earnings per share. The difference between basic and diluted weighted average shares outstanding was the dilutive effect of unvested restricted stock, unvested restricted stock units, stock options, and preferred stock. For the three and nine months ended September 30, 2015, diluted net loss per share is the same as basic net loss per share due to the Company's net loss attributable to common stockholders and the potential shares of common stock that could have been issuable have been excluded from the calculation of diluted net loss per share because the effects, as a result of our net loss attributable to common stockholders, would be anti-dilutive.

The following table represents a reconciliation of the basic and diluted earnings per share computations contained in our condensed consolidated financial statements (in thousands, except per share data):



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2015			2014		2015			2014
Net income (loss)	$	(714	)	$	198	$	(1,217	)	$	(635	)
Less: preferred stock dividends	5			5		15			15
Net income (loss) attributable to common stockholders	$	(719	)	$	193	$	(1,232	)	$	(650	)

Weighted average shares outstanding - basic	35,393			34,950		35,441			34,885
Add effect of dilutive securities:
Unvested restricted stock awards	—			670		—			—
Shares of common stock issuable upon conversion of preferred stock, Series A-2	—			132		—			—
Stock options	—			17		—			—
Weighted average shares outstanding - diluted	35,393			35,769		35,441			34,885
Basic net income (loss) per share	$	(0.02	)	$	0.01	$	(0.03	)	$	(0.02	)
Diluted net income (loss) per share	$	(0.02	)	$	0.01	$	(0.03	)	$	(0.02	)

The weighted average diluted shares of common stock outstanding for the three months ended September 30, 2015 excludes the effect of 1,300,000 out-of-the-money options, because their effect would be anti-dilutive.

The following table sets forth the potential shares of common stock that were excluded from diluted weighted average shares of common stock outstanding (in thousands):



	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2015	2014	2015	2014
Unvested restricted stock	261	—	261	670
Shares of common stock issuable upon conversion of preferred stock, Series A-2	79	—	79	—
Stock options outstanding	—	1,358	—	1,358
Unvested restricted stock units	2,855	—	2,855	—