(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