Calculation of Basic and Diluted Earnings per Share

12 Months Ended

Dec. 31, 2015

Loss per common share:

Calculation of Basic and Diluted Earnings per Share

8. Calculation of Basic and Diluted Earnings per Share

(in thousands, except per share amounts)		Years Ended December 31,
		2015		2014
Numerator:
Net Loss - basic and diluted	$	(6,364)	$	(554)
Denominator:
Denominator for basic earnings per share - weighted-average shares		3,014		3,014
Dilutive potential common shares		-		-
Denominator for diluted earnings per share - weighted-average shares and assumed conversions		3,014		3,014
Basic and diluted earnings per common share	$	(2.11)	$	(0.18)

For the years ended December 31, 2015 and 2014, 528,304 detachable warrants (the “Warrants”), which have an exercise price of $2.65 and a maturity date of May 4, 2016, were excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. The Warrants were issued in May 2009 with our six percent (6%) convertible subordinated debentures. The debentures were converted to common stock on May 4, 2012.

For the years ended December 31, 2015 and 2014, approximately 146,300 and 147,700, respectively, employee stock options were excluded from calculation of diluted earnings per share as the effect would be anti-dilutive.