Calculation of Basic and Diluted Earnings per Share

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
		2013		2012		2013		2012
Numerator:
Net Income	$	150	$	1,559	$	75	$	2,955
Numerator for basic earnings per share - income available to common shareholders		150		1,559		75		2,955
Effect of dilutive securities:
6% Convertible Debenture Interest Expense		-		14		-		36
Numerator for diluted income per share - income available to common shareholders after assumed conversions	$	150	$	1,573	$	75	$	2,991
Denominator:
Denominator for basic income per share - weighted-average shares		2,998		2,769		2,992		2,585
Effect of dilutive securities:
Employee stock options		(1)		40		(1)		39
Detachable warrants		407		461		204		457
6% Convertible Debenture		-		192		-		370
Dilutive potential common shares		406		693		204		866
Denominator for diluted income per share - weighted-average shares and assumed conversions		3,404		3,462		3,196		3,451
Basic income per common share	$	0.05	$	0.56	$	0.03	$	1.14
Diluted income per common share	$	0.04	$	0.45	$	0.02	$	0.87

For the three and six month periods ended June 30, 2013 and 2012, approximately 65,000 and 42,000, respectively, of shares issuable upon exercise of employee 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 anti-dilutive.