5. Calculation of Basic and Diluted Earnings per Share

9 Months Ended

Sep. 30, 2017

(Loss) earnings 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 September 30,				Nine Months Ended September 30,
		2017		2016		2017		2016
Numerator:
Net (Loss) Income - basic and diluted	$	(329)	$	291	$	(109)	$	622
Denominator:
Denominator for basic earnings per share - weighted-average shares		3,542		3,542		3,542		3,319
Effect of dilutive securities:
Employee stock options		-		8		-		3
Warrants		-		-		-		76
Dilutive potential common shares		-		8		-		79
Denominator for diluted earnings per share - weighted-average shares and assumed conversions		3,542		3,550		3,542		3,398
Basic (loss) earnings per common share	$	(0.09)	$	0.08	$	(0.03)	$	0.19
Diluted (loss) earnings per common share	$	(0.09)	$	0.08	$	(0.03)	$	0.18

Approximately 152,000 employee stock options were excluded from the calculation of diluted earnings per share for each of the three and nine month periods ended September 30, 2017,  as the effect would be anti-dilutive.

For the three and nine month periods ended September 30, 2016, approximately 130,000 employee stock options were excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive.