3. Basic and Diluted Net Income (Loss) Per Common Share

In calculating earnings (loss) per share, the Company follows the two-class method, which distinguishes between classes of securities based on the proportionate participation rights of each security type in the Company’s undistributed net income (loss). The Company’s Class A common stock, Class B common stock and Series C convertible preferred stock share equally on an as-converted basis with respect to net income (loss).

Basic net income (loss) per share is computed by dividing net income (loss) applicable to stockholders by the weighted average number of shares for each period on an as-converted basis. Diluted net income (loss) per common share is computed by giving effect to common stock equivalents as if they were outstanding for the entire period.

The following tables set forth the computation of basic and diluted net income (loss) available to stockholders for the three- and nine-month periods ended September 30, 2018 and 2017 (in thousands):

	Three Months Ended September 30,
	2018						2017
	Class A		Class B		Series C		Class A			Class B			Series C
Basic net income (loss) per share:
Numerator
Allocation of undistributed earnings (losses)	$	5,002	$	2,765	$	898	$	(4,063	)	$	(2,282	)	$	(741	)
Denominator
Number of shares used in per share computation (as converted)		4,234		2,340		760		4,167			2,340			760
Basic net income (loss) per share	$	1.18	$	1.18	$	1.18	$	(0.98	)	$	(0.98	)	$	(0.98	)

Diluted net income (loss) per share:
Numerator
Allocation of undistributed earnings (losses)	$	5,002	$	2,765	$	898	$	(4,063	)	$	(2,282	)	$	(741	)
Denominator
Number of shares used in basic computation		4,234		2,340		760		4,167			2,340			760
Weighted-average impact of dilutive equity instruments		9		—		—		—			—			—
Number of shares used in per share computation (as converted)		4,243		2,340		760		4,167			2,340			760
Diluted net income (loss) per share	$	1.18	$	1.18	$	1.18	$	(0.98	)	$	(0.98	)	$	(0.98	)

Common stock equivalents excluded from calculation of diluted net income (loss) per share as the effect would have been anti-dilutive:		380		—		—		394			—			—

	Nine Months Ended September 30,
	2018						2017
	Class A		Class B		Series C		Class A			Class B			Series C
Basic net income (loss) per share:
Numerator
Allocation of undistributed earnings (losses)	$	1,901	$	1,055	$	342	$	(8,806	)	$	(4,945	)	$	(1,606	)
Denominator
Number of shares used in per share computation (as converted)		4,217		2,340		760		4,167			2,340			760
Basic net income (loss) per share	$	0.45	$	0.45	$	0.45	$	(2.11	)	$	(2.11	)	$	(2.11	)

Diluted net income (loss) per share:
Numerator
Allocation of undistributed earnings (losses)	$	1,901	$	1,055	$	342	$	(8,806	)	$	(4,945	)	$	(1,606	)
Denominator
Number of shares used in basic computation		4,217		2,340		760		4,167			2,340			760
Weighted-average impact of dilutive equity instruments		—		—		—		—			—			—
Number of shares used in per share computation (as converted)		4,217		2,340		760		4,167			2,340			760
Diluted net income (loss) per share	$	0.45	$	0.45	$	0.45	$	(2.11	)	$	(2.11	)	$	(2.11	)

Common stock equivalents excluded from calculation of diluted net income (loss) per share as the effect would have been anti-dilutive:		380		—		—		394			—			—