2. Net Income (loss) Per Common Share

3 Months Ended

Jun. 30, 2012

2. Net Income (loss) Per Common Share:

2. 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 June 30, 2012	Six months ended June 30, 2012	Three months ended June 30, 2011	Six months ended June 30, 2011
Denominator for basic net income (loss) per share, weighted average shares outstanding	14,802,436	14,691,180	13,747,028	13,862,274
Dilutive effect of common stock options	0	0	0	0
Dilutive Effect of Series C convertible preferred stock	0	0	0	0
Denominator for diluted net income (loss) per share, weighted average shares outstanding	14,802,436	14,691,180	13,747,028	13,862,274

Options to purchase 373,000and 320,000 shares of our common stock outstanding at June 30, 2012 and 2011, respectively, and 375 shares of convertible preferred stock at June 30, 2012 and 2011, were not included in the computation of diluted net loss per share because they were anti-dilutive.