Net Loss per Common Share

6 Months Ended

Jun. 30, 2016

5.	Net Loss per Common Share:

Basic income per common share is computed using the weighted-average number of common shares outstanding during each period. Diluted income 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,
	2016		2015		2016		2015

Weighted-average shares for basic		4,866,593		4,860,863		4,865,223		4,859,990
Dilutive effect of convertible preferred stock and stock options		122,296		74,327		-		-
Weighted-average shares for diluted		4,988,889		4,935,190		4,865,223		4,859,990

Options to purchase 103,465 and 67,063 shares of common stock were outstanding at June 30, 2016 and 2015, respectively. For the three month periods ended June 30, 2016 and 2015, 58,296 and 10,327 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, 2016 and 2015, no outstanding options were included as the effect would be antidilutive.

Shares of preferred stock convertible into 64,000 shares of common stock were outstanding for the three and six-month periods ended June 30, 2016 and 2015. For the three month periods ended June 30, 2016 and 2015, the 64,000 shares were included in the calculation of diluted earnings per share. For the six month period ended June 30, 2016 and 2015, the 64,000 shares were not included in the calculation of diluted earnings per share as the effect would be antidilutive.