NET INCOME (LOSS) PER COMMON SHARE

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

NET INCOME (LOSS) PER COMMON SHARE

2. NET INCOME (LOSS) PER COMMON SHARE

The following sets forth the denominator used in the calculations of basic net income (loss) per share and net income (loss) per share assuming dilution:

	Three months ended		Nine months ended		Three months  ended		Nine months ended
	September 30,  2013		September 30,  2013		September 30, 2012		September 30, 2012
Denominator for basic net income (loss) per share,     weighted average shares outstanding		16,867,971		16,205,578		15,184,765		14,930,809
Dilutive effect of common stock options		N/A		N/A		N/A		N/A
Dilutive effect of Series C convertible     preferred stock and convertible debt		N/A		N/A		N/A		N/A
Denominator for diluted net income (loss) per share, weighted average shares outstanding		16,867,971		16,205,578		15,184,765		14,930,809

Options to purchase 572,000 and 343,000shares of our common stock outstanding at September 30, 2013, and 2012, respectively, were outstanding but not included in the computation of diluted net income (loss) per share because they were anti-dilutive.  The outstanding 375 shares of convertible preferred stock outstanding at September 30, 2013 and 2012, $2,900,500, and $960,000 in convertible debt at September 30, 2013 and 2012, respectively, and the warrant issued to Tonaquint, Inc. (see note 10) were not included in the computation of diluted net income (loss) per share because they were also anti-dilutive.