
		Three Months Ended June 30,
(amounts in thousands, except for per share)		2013			2012
NUMERATOR:
Net income (loss) before participating securities	$	33		$	(235	)
Less: income applicable to participating securities (1)		(2	)		-
Net income (loss) applicable to common stockholders	$	31		$	(235	)

DENOMINATOR:
Weighted average shares of common stock
used in basic earnings per share		5,775			5,459
Effects of puttable common stock (2)		-			272
Weighted average shares outstanding - Basic and Diluted (3)		5,775			5,731
EPS:
Net income (loss) per share - Basic and Diluted	$	0.01		$	(0.04	)

(1) For the three months ended June 30, 2013, the Company had 0.4 million nonvested restricted stock that are considered participating securities to which income is allocated. For the three months ended June 30, 2012, the Company had 0.1 million nonvested participating securities. As the participating securities do not participate in losses, there was no allocation of loss for the period.

(2) Included in the weighted average shares – basic for 2012 were puttable common shares that arose from the Alteva, LLC acquisition in August 2011. During the second half of 2012, all of the puttable shares were either exercised or the put option was terminated and are no longer outstanding.

(3) For the three months ended June 30, 2013, 0.2 million potentially dilutive shares related to out of the money common stock options were excluded from EPS, as their effect was anti-dilutive. For the three months ended June 30, 2012, 0.2 million potentially dilutive shares related to out of the money stock options were excluded from EPS as their effect was anti-dilutive.


		Six Months Ended June 30,
(amounts in thousands, except for per share)		2013			2012
NUMERATOR:
Net income (loss), before participating securities	$	(806	)	$	(1,475	)
Less: income applicable to participating securities		-			-
Net income (loss) applicable to common stockholders	$	(806	)	$	(1,475	)

DENOMINATOR:
Weighted average shares of common stock
used in basic earnings per share		5,760			5,451
Effects of puttable common stock (2)		-			272
Weighted average shares outstanding - Basic and Diluted (3)		5,760			5,723
EPS:
Net income (loss) per share - Basic and Dilutive	$	(0.14	)	$	(0.26	)

(1) For the six months ended June 30, 2013 and 2012, the Company had 0.4 million and 0.1 million nonvested restricted stock that are considered participating securities to which income is allocated, respectively. As the participating securities do not participate in losses, there was no allocation of loss for the periods.

(3) Basic and diluted weighted average shares were the same for the six months ended June 30, 2013 and 2012 because the effects of the potentially dilutive securities were anti-dilutive and were excluded from the calculation. Such securities included 0.2 million and 0.1 million common stock options at June 30, 2013 and June 30, 2012, respectively.