EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 3: EARNINGS PER SHARE

Basic income per share is computed based on the weighted average number of common shares outstanding and excludes any potential dilution. Diluted income per share reflects potential dilution from the exercise or conversion of securities into common stock. The dilutive effect of the Company’s share-based awards is computed using the treasury stock method, which assumes that all share-based awards are exercised and the hypothetical proceeds from exercise are used to purchase common stock at the average market price during the period.

The following represents a reconciliation of the numerators and denominators of the basic and diluted income per share computation for the years ended December 31, 2012 and 2011:

	Year ended December 31,
	2012		2011
Net income	$	91,409	$	5,395
Basic weighted average common shares outstanding		13,928,371		13,430,054
Add incremental shares for:
Stock options		42,607		-
Warrants		387,046		170,235
Diluted weighted average common shares outstanding		14,358,024		13,600,289
Net income per share:
Basic	$	0.01	$	-
Diluted	$	0.01	$	-

The following stock options and warrants are excluded from the determination of the weighted average common shares outstanding for diluted income per share in each of the periods presented as the effects were anti-dilutive or the exercise price for the outstanding options exceeded the average market price for the Company’s common stock.

	Year ended December 31,
	2012		2011
Stock options		7,500		1,022,685
Warrants		417,483		867,483
Restricted stock		-		260,345