Note 2: Net loss per Common Share

The following table sets forth the computation of basic and diluted loss income per common share:

	Three months ended				Nine months ended
	September 30,				September 30,
(dollars in thousands, except per share amounts)	2017		2016		2017		2016
Numerator:
Net loss	$	(259)	$	(520)	$	(250)	$	(3,762)
Adjustment for interest expense on convertible notes (A)		-		-		-		-

Net loss	$	(259)	$	(520)	$	(250)	$	(3,762)

Denominator:

Weighted average number of shares of common stock outstanding		7,228,277		7,206,659		7,221,426		7,188,782
Weighted average effect of dilutive stock options and other stock compensation		-		-		-		-

Weighted average number of shares of common stock outstanding, as adjusted		7,228,277		7,206,659		7,221,426		7,188,782

Net loss per common share:

Net loss per common share -Basic	$	(0.04)	$	(0.07)	$	(0.03)	$	(0.52)

Net loss per common share -Diluted	$	(0.04)	$	(0.07)	$	(0.03)	$	(0.52)

(A)

An adjustment for interest expense on convertible notes was excluded from the loss per share calculation for the three and nine months ended September 30, 2016 as a result of the convertible notes being antidilutive. The right to convert all or any portion of the outstanding principal of the Convertible Notes into shares of common stock expired on August 17, 2017.

We had options to purchase 495,675 and 780,250 shares of common stock outstanding at an average price of $31.74 and $28.18, respectively, which were excluded in the computation of diluted net loss per common share for the three months ended September 30, 2017 and 2016, respectively. We had options to purchase 566,075 and 791,250 shares of common stock outstanding at an average price of $30.21 and $27.45, respectively, which were excluded in the computation of diluted net loss per common share for the nine months ended September 30, 2017 and 2016, respectively. These outstanding options were not included in the computation of diluted net loss per common share because their respective exercise prices were greater than the average market price of our common stock. The calculation of diluted net loss per common share for the three and nine months ended September 30, 2016 excluded 406,094 and 408,526 shares, respectively, for the assumed conversion of convertible notes as a result of being anti-dilutive. The calculation of diluted net loss per common share for the three months ended September 30, 2017 and 2016 excluded 121,750 and 2,912 shares, respectively, for the assumed exercise of stock options as a result of being in a net loss position. The calculation of diluted net loss per common share for the nine months ended September 30, 2017 and 2016 excluded 99,638 and 1,825 shares, respectively, for the assumed exercise of stock options as a result of being in a net loss position. In addition, for the three and nine months ended September 30, 2017, the calculation of diluted net loss per share excluded 39,216 and 29,101 shares, respectively, for the assumed issuance of stock for restricted stock units as a result of being in a net loss position.