5. Calculation of Basic and Diluted Earnings per Share

3 Months Ended

Mar. 31, 2017

Income (Loss) per common share:

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,
		2017		2016
Numerator:
Net (Loss) Income - basic and diluted	$	(132)	$	244
Denominator:
Denominator for basic (loss) earnings per share - weighted-average shares		3,542		3,014
Effect of dilutive securities:
Employee stock options		-		1
Warrants		-		172
Dilutive potential common shares		-		173
Denominator for diluted (loss) earnings per share - weighted-average shares and assumed conversions		3,542		3,187
Basic and diluted (loss) earnings per common share	$	(0.04)	$	0.08

For the three month period ended March 31, 2017, approximately 173,000 employee stock options were excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive due to the net loss for the period.

For the three month period ended March 31, 2016, approximately 359,000 employee stock options were excluded from the calculation of diluted earnings per share as the exercise price was greater than the market price of the common shares and, therefore, the effect would be anti-dilutive.