3. LOSS PER SHARE

Basic loss per share is computed on the basis of the weighted average number of shares of common stock outstanding. Diluted loss per share is computed on the basis of the weighted average number of shares of common stock outstanding plus the effect of potentially dilutive common stock options, restricted stock and restricted stock units using the treasury stock method. The components of basic and diluted loss per NCM, Inc. share are as follows:

There were no exchangeable NCM LLC common units outstanding for the three and six months ended July 2, 2026. The effect of the 214 and 1,739 weighted average exchangeable NCM LLC common units held by AMC, for the three and six months ended June 26, 2025, respectively, have been excluded from the calculation of diluted weighted average shares and loss per NCM, Inc. share as they were anti-dilutive. NCM LLC common units do not participate in dividends paid on NCM, Inc.'s common stock. In addition, there were 7,445,640, 6,334,462, 7,445,640, and 6,334,462 stock options and non-vested restricted stock units outstanding for the three and six months ended July 2, 2026 and June 26, 2025, respectively, which were excluded from the calculation as they were anti-dilutive. The Company’s non-vested (restricted) shares do not meet the definition of a participating security as the dividends will not be paid if the shares do not vest.