2. Net Income (loss) Per Common Share

3 Months Ended

Mar. 31, 2013

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 March 31, 2013	Three months ended March 31, 2012
Denominator for basic net income (loss) per share, weighted average shares outstanding	15,588,693	14,752,251
Dilutive effect of common stock options	N/A	N/A
Dilutive Effect of Series C convertible preferred stock	N/A	N/A
Denominator for diluted net income (loss) per share, weighted average shares outstanding	15,588,693	14,752,251

Options to purchase 1,367,000 and 373,000 shares of our common stock outstanding at March 31, 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 March 31, 2013 and 2012, and $2,040,000, and $300,000 in convertible debt at March 31, 2013 and 2012, respectively, were not included in the computation of diluted net income (loss) per share because they were also anti-dilutive.