Income (Loss) per Common Share

6 Months Ended

Jun. 30, 2012

Income (Loss) per Common Share [Abstract]

Income (Loss) per Common Share

6. Income (Loss) per Common Share:

Basic income (loss) per common share is computed using the weighted-average number of common shares outstanding during each period. Diluted income (loss) per common share reflects the effect of the Company’s outstanding convertible preferred stock and stock options except where such items would be antidilutive.

A reconciliation of weighted-average shares used for the basic computation and that used for the diluted computation is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Weighted-average shares for basic		4,833,640		4,818,415		4,833,640		4,818,415
Dilutive effect of convertible preferred stock and stock options		71,821		73,028		70,731		—
Weighted-average shares for diluted		4,905,461		4,891,443		4,904,371		4,818,415

Options to purchase 65,508 shares of common stock were outstanding at June 30, 2012. Options to purchase 58,617 shares of common stock were outstanding at June 30, 2011. For the three month periods ended June 30, 2012 and 2011, 7,821 and 9,028 of outstanding options to purchase common shares were included in the computation of diluted earnings per share (EPS). The remaining outstanding options to purchase common stock were not included in the computation of diluted EPS because the options exercise price was greater than the average market price of the Company’s common stock.

For the six month period ended June 30, 2012, 6,731 of outstanding options to purchase common shares were included in the computation of diluted EPS. The remaining outstanding options to purchase common stock were not included in the computation of diluted EPS because the options exercise price was greater than the average market price of the Company’s common stock.

Preferred Stock convertible into 64,000 shares of common stock at the rate of 100 shares of common stock for each one share of Preferred Stock was outstanding for the three and six-month periods ended June 30, 2012 and 2011. For the three month periods ended June 30, 2012 and 2011 and for the six month period ended June 30, 2012, 64,000 shares of the Company’s common stock were included in the diluted EPS. For the six month period ended June 30, 2011, the 64,000 shares of the Company’s common stock were not included as the effect would be antidilutive.