NOTE 9: 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 Companys 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 three and nine months ended September 30, 2015, 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 three and nine months ended September 30, 2015 and 2014 was as follows:


		For the three months ended September 30,
(amounts in thousands, except for per share)		2015			2014

NUMERATOR:
Net (loss) income applicable to common stock before participating securities	$	(1,824	)	$	(1,336	)
Less: income applicable to participating securities (1)		-			-
Net (loss) income applicable to common stock	$	(1,824	)	$	(1,336	)

DENOMINATOR:
Weighted average shares outstanding - Basic and Diluted (2)		5,871			5,826

EPS:
Net (loss) income per share - Basic and Diluted	$	(0.31	)	$	(0.23	)

(1)	For the three months ended September 30, 2015 and 2014, the Company had 0.1 million and 0.2 million, respectively in nonvested participating securities. As the participating securities do not participate in losses, there was no allocation of loss for the three months ended September 30, 2015 and 2014.
(2)	For the three months ended September 30, 2015 and 2014, potentially dilutive shares related to out of the money common stock options that were excluded from EPS, as their effect was anti-dilutive, were nominal.


		For the nine months ended September 30,
(amounts in thousands, except for per share)		2015			2014

NUMERATOR:
Net (loss) income applicable to common stock before participating securities	$	(3,857	)	$	29,939
Less: income applicable to participating securities (1)		-			(1,174	)
Net (loss) income applicable to common stock	$	(3,857	)	$	28,765

DENOMINATOR:
Weighted average shares outstanding - Basic and Diluted (2)		5,853			5,802

EPS:
Net (loss) income per share - Basic and Diluted	$	(0.66	)	$	4.96

(1)	For the nine months ended September 30, 2015 and 2014, the Company had 0.1 million and 0.2 million, respectively in nonvested participating securities. As the participating securities do not participate in losses, there was no allocation of loss for the nine months ended September 30, 2015.
(2)	For the nine months ended September 30, 2015 and 2014, potentially dilutive shares related to out of the money common stock options that were excluded from EPS, as their effect was anti-dilutive, were nominal.