Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2013

Earnings (Loss) Per Share [Abstract]

Earnings (Loss) Per Share

NOTE 15: EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing net income (loss) applicable to common stock by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income (loss) applicable to common stock by the weighted average number of shares of common stock adjusted to include the effect of potentially dilutive securities. Potentially dilutive securities include incremental shares issuable upon exercise of outstanding stock options and shares of unvested restricted stock. Diluted earnings (loss) per share exclude all dilutive securities if their effect is anti-dilutive.

The Company's restricted stock awards are considered "participating securities" because they contain non-forfeitable rights to dividends. Under the two-class method, earnings per share ("EPS") is computed by dividing earnings allocated to common shareholders by the weighted-average number of common shares outstanding for the period. In applying the two-class method, earnings are allocated to both shares of common stock and participating securities based on their respective weighted-average shares outstanding for the period.

For the years ended December 31, 2013, 2012 and 2011, the Company experienced a net loss. As a result, the effect of participating securities was excluded from the computation of basic and diluted EPS. The net losses were not allocated because the restricted stockholders are not required to fund losses.

The weighted average number of shares of common stock used in basic and diluted earnings per share for the years ended December 31, 2013, 2012 and 2011, is as follows:

		For the Years Ended December 31,
(amounts in thousands, except for per share)		2013			2012			2011
					(as restated)
NUMERATOR:
Net income (loss) applicable to common stock before participating securities	$	(671	)	$	(10,914	)	$	(2,946	)
Less: income applicable to participating securities (1)		-			-			-
Net income (loss) applicable to common stock	$	(671	)	$	(10,914	)	$	(2,946	)
DENOMINATOR:
Weighted average shares of common stock
used in basic earnings per share		6,112			5,712			5,425
Effects of puttable common stock (2)		-			-			11
Weighted average shares outstanding - Basic and Diluted (3)		6,112			5,712			5,436
EPS:
Net earnings (loss) per share - Basic and Diluted	$	(0.11	)	$	(1.91	)	$	(0.54	)

(1) For the years ended December 31, 2013, 2012 and 2011, the Company had 0.3 million, 0.1 million and 0.1 million, respectively, of nonvested participating securities. As the participating securities do not participate in losses, there was no allocation of loss for the years ended December 31, 2013, 2012 and 2011.

(2) Included in the weighted average shares of common stock – basic for 2012 and 2011 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 year ended December 31, 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. The effects for the years ended December 31, 2012 and 2011 were nominal.