8. NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO COMMON STOCK

Net (loss) income per share attributable to common stock is calculated using the two-class method. The two-class method is an allocation method of calculating (loss) earnings per share when a company’s capital structure includes participating securities that have rights to undistributed earnings. The Company’s employees and officers that hold unvested restricted stock are entitled to dividends when the Company pays dividends.

The Company’s basic net (loss) income per share attributable to common stock is computed by reducing the Company’s net (loss) income by the net (loss) income allocable to unvested restricted stockholders that have a right to participate in earnings. The Company’s employees and officers that hold unvested restricted stock do not participate in losses because they are not contractually obligated to do so. The undistributed earnings are allocated based on the relative percentage of the weighted average unvested restricted stock awards. The basic net (loss) income per share attributable to common stock is computed by dividing the net (loss) income attributable to common stock by the weighted average shares outstanding. The weighted average number of shares outstanding for the three months ended March 31, 2015 was calculated by totaling (i) the product of (x) the weighted shares of Legacy Dawson Common Stock outstanding at the beginning of the period multiplied by (y) the Exchange Ratio, plus (ii) the number of shares associated with awards of Legacy Dawson restricted stock and restricted stock units that vested in conjunction with the Merger, weighted as of February 11, 2015, plus (iii) the number of shares of Legacy TGC Common Stock outstanding immediately prior to the Merger, weighted to reflect that such shares were outstanding from February 11, 2015 until the end of the period. The weighted average number of shares outstanding for the three months ended March 31, 2014 was calculated by multiplying the weighted average shares of Legacy Dawson Common Stock outstanding during the period by the Exchange Ratio. The Company’s dilutive net (loss) income per share attributable to common stock is computed by adjusting basic net (loss) income per share attributable to common stock by diluted (loss) income allocable to unvested restricted stock divided by weighted average diluted shares outstanding. A reconciliation of the basic and diluted loss per share attributable to common stock is as follows:

	Three Months Ended March 31,
	2015			2014
	(in 000’s)
Net (loss) income	$	(6,592	)	$	1,652
Income allocable to unvested restricted stock	—			(21		)
Basic (loss) income attributable to common stock	$	(6,592	)	$	1,631
Reallocation of participating earnings	—			—
Diluted (loss) income attributable to common stock	$	(6,592	)	$	1,631
Weighted average common shares outstanding:
Basic	18,021,366			14,009,358
Dilutive common stock options and restricted stock units	—			66,630
Diluted	18,021,366			14,075,988
Basic (loss) income attributable to a share of common stock	$	(0.37	)	$	0.12
Diluted (loss) income attributable to a share of common stock	$	(0.37	)	$	0.12

The Company had a net loss in the three months ended March 31, 2015. As a result, all stock options and restricted stock units were anti-dilutive and excluded from weighted average shares used in determining the loss attributable to share of common stock for the respective periods. There were no shares that had anti-dilutive effect on the calculation of dilutive income attributable to common stock for the quarter ended March 31, 2014.

None of the Company’s stock options or restricted stock units were dilutive for the three months ended March 31, 2015 due to the loss in that period. The following weighted average numbers of stock options and restricted stock units have been excluded from the calculation of diluted loss per share attributable to common stock, as their effect would be anti-dilutive for the three months ended March 31, 2014:

Stock options		92,315
Restricted stock units		15,832
Total		108,147

Shares of 46,500 and 103,500 respectively of unvested restricted stock at March 31, 2015 and 2014 are included in common stock outstanding as such shares have a nonforfeitable right to participate in any dividends that might be declared and have the right to vote.