3. NET INCOME (LOSS) PER COMMON SHARE

Basic net income (loss) per common share is computed using the weighted-average number of shares of common stock outstanding. In periods where net income is reported, the weighted-average number of shares is increased by warrants and options in the money to calculate diluted net income per common share.

The following table represents the calculation of basic and diluted net income (loss) per common share (unaudited, in thousands, except per share data):


	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2018		2017		2018		2017
Net income (loss)	$	2,000	$	(788)	$	2,604	$	(1,356)
Per share information:
Earnings (loss) per share:
Basic	$	0.07	$	(0.03)	$	0.09	$	(0.05)
Diluted	$	0.07	$	(0.03)	$	0.09	$	(0.05)
Weighted-average shares used in computation:
Basic		27,875		27,241		27,781		27,213
Effect of dilutive options		1,545		—		1,906		—
Diluted		29,420		27,241		29,687		27,213

Weighted-average shares of stock options to purchase 232,634 and 3,505,992 shares of common stock for the three months ended December 31, 2018 and 2017, respectively, and weighted-average shares of stock options to purchase 184,228 and 2,926,900 shares of common stock for the six months ended December 31, 2018 and 2017, respectively, were not included in the computation of diluted net income (loss ) per common share due to their anti-dilutive effect. Such securities could have a dilutive effect in future periods.