11.	EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing net income attributable to Ultralife Corporation by the weighted-average shares outstanding during the period. Diluted EPS includes the dilutive effect of securities, if any, and is calculated using the treasury stock method. For the

three

-month period ended

September 30, 2018,

1,252,502

stock options and

17,500

restricted stock awards were included in the calculation of Diluted EPS as such securities are dilutive. Inclusion of these securities resulted in

571,829

additional shares in the calculation of fully diluted earnings per share. For the comparable

three

-month period ended

October 1, 2017,

1,481,844

stock options and

restricted stock awards were included in the calculation of Diluted EPS resulting in

407,668

additional shares in the calculation of fully diluted earnings per share. For the

nine

-month periods ended

September 30, 2018

and

October 1, 2017,

1,252,502

and

1,066,844

stock options and

17,500

and

zero

restricted stock awards, respectively, were included in the calculation of Diluted EPS as such securities are dilutive. Inclusion of these securities resulted in

548,004

and

323,217

additional shares, respectively, in the calculation of fully diluted earnings per share.

There were

02,250

and

569,000

outstanding stock options for the

three

-month periods ended

September 30, 2018

and

October 1, 2017,

respectively, which were

not

included in EPS as the effect would be anti-dilutive. There were

02,250

and

984,000

outstanding stock options for the

nine

-month periods ended

September 30, 2018

and

October 1, 2017,

respectively, which were

not

included in EPS as the effect would be anti-dilutive.