8 NET INCOME (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

NET INCOME (LOSS) PER SHARE

NOTE 8.       NET INCOME (LOSS) PER SHARE

A reconciliation of net income and weighted average shares used in computing basic and diluted net income per share is as follows:

	Six Months Ended
	June 30,
	2016				2015
	(in thousands, except per share data)
Basic net income (loss) per share:
Net income (loss) applicable to common shares		$	(0.19	)		$	0.11
Weighted average and common shares outstanding			12,359				11,639
Basic net income (loss) per share of common stock		$	(0.19	)		$	0.11
Diluted net income (loss) per share:
Net income (loss) applicable to common shares		$	(0.19	)		$	0.11
Weighted average and common shares outstanding			12,359				11,639
Dilutive effects of convertible debt, stock options and warrants			-				5,656
Weighted average common shares, assuming dilutive effect of stock options			12,359				17,294
Diluted net income (loss) per share of common stock		$	(0.19	)		$	0.11

Share-based awards, inclusive of all grants made under the Company's equity plans, for which either the stock option exercise price or the fair value of the restricted share award exceeds the average market price over the period, have an anti-dilutive effect on earnings per share, and accordingly, are excluded from the diluted computations for all periods presented.

As of June 30, 2016, there were approximately 1,446,369 share-based awards outstanding, respectively, under the Company's equity plans leaving 553,631 share-based units available under the Plan.  During the six months ended June 30, 2016, we granted our employees options to purchase 755,500 shares of our common stock and restricted stock units to purchase 507,680 shares of our common stock.

Due to the Company's net loss, potential dilutive shares were not included in the calculation of diluted EPS on June 30, 2016, as it will have an antidilutive effect.