Calculation of Basic and Diluted Earnings per Share

3 Months Ended

Mar. 31, 2014

Calculation of Basic and Diluted Earnings per Share:

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,
		2014		2013
Numerator:
Net Income (Loss)	$	707	$	(75)
Numerator for basic earnings per share - income (loss) available to common shareholders		707		(75)
Effect of dilutive securities:		-		-
Numerator for diluted earnings per share - income (loss) available to common shareholders after assumed conversions	$	707	$	(75)
Denominator:
Denominator for basic earnings per share - weighted-average shares		3,014		2,987
Effect of dilutive securities:
Employee stock options		5		-
Warrants		394		-
Dilutive potential common shares		399		-
Denominator for diluted earnings per share - weighted-average shares and assumed conversions		3,413		2,987
Basic earnings per common share	$	0.23	$	(0.03)
Diluted earnings per common share	$	0.21	$	(0.03)

For the three month period ended March 31, 2014, approximately 105,000 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.

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.