2. Net Income (loss) Per Common Share

9 Months Ended

Sep. 30, 2012

Notes

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 September 30, 2012	Nine months ended September 30, 2012	Three months ended September 30, 2011	Nine months ended September 30, 2011
Denominator for basic net income (loss) per share, weighted average shares outstanding	15,184,765	14,930,809	14,255,351	13,994,740
Dilutive effect of common stock options	N/A	N/A	N/A	N/A
Dilutive Effect of Series C convertible preferred stock	N/A	N/A	N/A	N/A
Denominator for diluted net income (loss) per share, weighted average shares outstanding	15,184,765	14,930,809	14,255,351	13,994,740

Options to purchase 343,000and 320,000 shares of our common stock outstanding at September 30, 2012 and 2011, respectively, and 375  and 375 shares of convertible preferred stock at September 30, 2012 and 2011, were not included in the computation of diluted net loss per share because they were anti-dilutive.