Earnings Per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share

Earnings Per Share [Text Block]

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	Three months ended
	March 31, 2012	March 31, 2011
Denominator for basic net income (loss) per share, weighted average shares outstanding	14,752,251	13,826,055
Dilutive effect of common stock options	N/A	8,212
Dilutive Effect of Series C convertible preferred stock	N/A	632,520
Denominator for diluted net income (loss) per share, weighted average shares outstanding	14,752,251	14,466,787

Options to purchase 373,000 shares of our common stock outstanding at March 31, 2012 and 375 shares of convertible preferred stock at March 31, 2012 were not included in the computation of diluted net income (loss) per share because they were anti-dilutive. 

In the quarter ended March 31, 2011, those options with exercise prices less than $1.28, (average market price for the period) if exercised, would have resulted in dilution using the treasury stock method.  At March 31, 2011 the Company had 280,000 outstanding options to purchase its common stock, of which only 30,000 options had an exercise price less than $1.28.  In addition, 750 shares of convertible preferred stock were outstanding at March 31, 2011, with the dilutive effect of 632,520 shares of common stock.