Calculation of Basic and Diluted Earnings per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Calculation of Basic and Diluted Earnings per Share

Note 5. Calculation of Basic and Diluted Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share:

(in thousands, except per share amounts)		Three Months  Ended March 31,
		2013		2012
Numerator:
Net Income (Loss)	$	(75)	$	1,396
Numerator for basic earnings per share -  income available to common shareholders		(75)		1,396
Effect of dilutive securities:
6% Convertible Debenture Interest Expense		-		22
Numerator for diluted income per share -  income available to common shareholders after assumed conversions	$	(75)	$	1,418
Denominator:
Denominator for basic income per share - weighted-average shares		2,987		2,402
Effect of dilutive securities:
Employee stock options		-		36
Detachable warrants		-		454
6% Convertible Debenture		-		547
Dilutive potential common shares		-		1,037
Denominator for diluted income per share -  weighted-average shares and assumed conversions		2,987		3,439
Basic income (loss) per common share	$	(0.03)	$	0.58
Diluted income (loss) per common share	$	(0.03)	$	0.41

For the three month period ended March 31, 2013, approximately 174,000 stock options and 528,000 warrants were excluded from the calculation of diluted earnings per share as the effect would be antidilutive.

For the three month period ended March 31, 2012, approximately 24,000 stock options were excluded from the calculation of diluted earnings per share as the exercise price was greater than the average market price of the common shares and, therefore, the effect would be antidilutive.