(3) EARNING (LOSS) PER SHARE

Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net loss by the weighted-average number of common shares outstanding and the number of dilutive potential common share equivalents during the period, calculated using the treasury-stock method for outstanding stock options.

The calculation of basic and diluted earnings (loss) per share for the three and nine months ended September 30, 2017 and 2016 is as follows:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2017		2016		2017		2016
Basic income per share:
Net income available to common stockholders	$	2,200	$	532	$	4,058	$	(140)
Basic weighted average shares outstanding		32,327		31,271		31,931		31,271
Basic income per share:	$	0.07	$	0.02	$	0.13	$	(0.00)

Diluted income per share:
Net income available to common stockholders	$	2,200	$	532	$	4,058	$	(140)
Weighted average shares outstanding		32,327		31,271		31,931		31,271
Effect of dilutive securities - options and restricted stock		1,218		170		859		-
Diluted weighted average shares outstanding		33,545		31,441		32,790		31,271
Diluted income per share:	$	0.07	$	0.02	$	0.12	$	(0.00)

For the three and nine months ended September 30, 2017, 0.1 million and 0.8 million shares, respectively, of common stock were excluded from the dilutive stock calculation because their exercise prices were greater than the average fair value of our common stock for the period.

For the three months ended September 30, 2016, 1.6 million shares of common stock were excluded from the dilutive stock calculation because their exercise prices were greater than the average fair value of our common stock for the period. For the nine months ended September 30, 2016, 2.2 million shares of common stock were excluded from the dilutive stock calculation due to the net loss for the period.

Prior to their issuance on August 28, 2017, the dilutive securities calculation included 776,250 shares of common stock issuable related to the private placement which was completed on February 28, 2017. The common shares were issuable six months from the closing of the shareholder notes.