Income (Loss) per Common Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Income (Loss) per Common Share

5. 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				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Weighted-average common shares for basic		4,853,088		4,843,608		4,852,469		4,843,012
Dilutive effect of convertible preferred stock and stock options		75,555		73,788		—		—
Weighted-average common shares for diluted		4,928,643		4,917,396		4,852,469		4,843,012

Options to purchase 65,191 shares of common stock were outstanding at June 30, 2014. Options to purchase 70,348 shares of common stock were outstanding at June 30, 2013. For the three month periods ended June 30, 2014 and 2013, 11,555 and 9,788 of outstanding options to purchase common shares were included in the computation of diluted earnings per share (EPS). For the six month period ended June 30, 2014 and 2013, no outstanding options were included as the effect would be antidilutive.

Preferred Stock is convertible into common stock at the rate of 100 shares of common stock for each one share of Preferred Stock outstanding for the three and six-month periods ended June 30, 2014 and 2013. For the three month periods ended June 30, 2014 and 2013, the 64,000 shares of the Company’s common stock were included. For the six month period ended June 30, 2014 and 2013, the 64,000 shares of the Company’s common stock were not included as the effect would be antidilutive.