Note 3. Net Income (Loss) Per Share

Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average shares of common stock outstanding for the period. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted average shares of common stock outstanding for the period plus amounts representing the dilutive effect of securities that are convertible into common stock. The Company calculates diluted earnings per common share using the treasury stock method and the as-if-converted method, as applicable.

The following table presents the computation of net income (loss) per share:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Numerator:
Net income (loss)	$	(3,190,347	)	$	(70,121	)	$	(4,296,138	)	$	314,970
Denominator:
Weighted average common shares outstanding - basic		9,439,025			9,520,285			9,459,272			9,440,368
Plus dilutive effect of potential common shares		—			—			—			680,630
Weighted average common shares outstanding - diluted		9,439,025			9,520,285			9,459,272			10,120,998
Net income (loss) per share:
Basic	$	(0.34	)	$	(0.01	)	$	(0.45	)	$	0.03
Diluted	$	(0.34	)	$	(0.01	)	$	(0.45	)	$	0.03

Diluted weighted average common shares outstanding for the six months ended June 30, 2017 includes 9,681 warrants and 670,949 options outstanding.

Potentially dilutive securities not included in the calculation of diluted net income (loss) per share because to do so would be anti-dilutive are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Employee stock options		1,152,520		384,538		1,349,833		366,732
Warrants outstanding		51,003		—		51,003		—
Total		1,203,523		384,538		1,400,836		366,732