Calculation of Basic and Diluted Earnings per Share

3 Months Ended

Mar. 31, 2015

Earnings (loss) per common 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,
	2015			2014
Numerator:
Net Income (Loss)	$	(190	)	$	707
Numerator for basic earnings (loss) per share - income available to common shareholders		(190	)		707
Effect of dilutive securities:
Numerator for diluted earnings (loss) per share - income available to common shareholders after assumed conversions	$	(190	)	$	707
Denominator:
Denominator for basic earnings (loss) per share - weighted-average shares		3,014			3,014
Effect of dilutive securities:
Employee stock options		-			5
Warrants		-			394
Dilutive potential common shares		-			399
Denominator for diluted earnings (loss) per share - weighted-average shares and assumed conversions		3,014			3,413
Basic earnings (loss) per common share	$	(0.06	)	$	0.23
Diluted earnings (loss) per common share	$	(0.06	)	$	0.21

For the three month period ended March 31, 2015, approximately 528,300 detachable warrants were excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive.  The warrants, issued in May 2009 with our six percent (6%) convertible subordinated debentures, have an exercise price of $2.65 and a maturity date of May 4, 2016.

Employee stock options excluded from the calculation of diluted earnings per share for the three month periods ended March 31, 2015 and 2014, were approximately 147,700 and 105,000, respectively, as the effect would be anti-dilutive.