17.	Net INCOME (Loss) PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) attributable to Intelligent Systems Corporation (numerator) by the weighted average number of common shares outstanding (denominator) during the period and excludes the dilutive effect of stock options. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during a period. In computing diluted income per share, the average stock price for the period is used in determining the number of shares assumed to be reacquired under the treasury stock method for the hypothetical exercise of stock options.

The following tables represent required disclosure of the reconciliation of the income (loss) and the shares used in the basic and diluted income (loss) per share computation:

Year ended December 31, (in thousands, except per share data)	2017		2016
Basic
Net income (loss) attributable to Intelligent Systems Corporation	$	473	$	(1,112	)
Weighted average common shares outstanding		8,766		8,736
Net income (loss) per share	$	0.05	$	(0.13	)

Diluted
Net income (loss) attributable to Intelligent Systems Corporation	$	473	$	(1,112	)
Weighted average common shares outstanding		8,766		8,736
Effect of dilutive potential common shares: stock options		116		--
Total		8,882		8,736
Net income (loss) per share	$	0.05	$	(0.13	)

December 31,

2017

and

2016,

respectively, there were

116,000

and

zero

dilutive stock options exercisable.