Earnings (Loss) per Share

3 Months Ended

Mar. 31, 2016

Weighted average common shares outstanding

Earnings (Loss) per Share

Note 9. Earnings (Loss) per Share

In accordance with FASB ASC 260, Earnings per Share, basic earnings (loss) per common share is computed using net earnings (loss) divided by the weighted average number of common shares outstanding for the periods presented. The computation of diluted earnings per common share involves the assumption that outstanding common shares are increased by shares issuable upon exercise of those warrants for which the market price exceeds the exercise price. The number of shares issuable upon the exercise of such warrants is decreased by shares that could have been purchased by the Company with related proceeds. For the three months ended March 31, 2016, the number of incremental common shares resulting from the assumed conversion of warrants was 1,143. Because the Company reported a net loss for the three months ended March 31, 2015, common stock equivalents, consisting of warrants to purchase common stock, were anti-dilutive.