(3) EARNINGS PER SHARE

Basic earnings per share are computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income 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 per share for the three months ended March 31, 2018 and 2017 are as follows:

	For the Three Months Ended March 31,
	2018		2017
Basic income per share:
Net income available to common stockholders	$	1,921	$	353
Basic weighted average shares outstanding		32,601		31,418
Basic income per share:	$	0.06	$	0.01

Diluted income per share:
Net income available to common stockholders	$	1,921	$	353
Weighted average shares outstanding		32,601		31,418
Effect of dilutive securities - options and restricted stock		1,813		618
Diluted weighted average shares outstanding		34,414		32,036
Diluted income per share:	$	0.06	$	0.01

For the three months ended March 31, 2018 and 2017, 0.2 million and 1.1 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.

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.