NOTE 9. CALCULATION OF NET LOSS PER SHARE

Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For the purposes of this calculation, unexercised stock options and common shares in respect of unvested restricted stock awards are considered common equivalents in periods in which they have a dilutive effect. Unexercised stock options and common shares in respect of unvested restricted stock awards that are anti-dilutive are excluded from the calculation.

The following table presents the computation of basic and diluted net loss per share (in thousands, except per share data):



	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2018		2017		2018		2017

Net loss	$	(2,281)	$	(499)	$	(6,980)	$	(3,179)
Weighted-average number of common shares outstanding		12,639		12,106		12,448		12,023

Net loss per share	$	(0.18)	$	(0.04)	$	(0.56)	$	(0.26)

For the three and nine months ended June 30, 2018 and 2017, all common equivalents were anti-dilutive as a result of the Company’s net loss position. Accordingly, all outstanding stock options and RSUs were excluded from the calculation of basic and diluted net loss per share for the three and nine month periods ended June 30, 2018 and 2017.