NOTE K – LOSS PER SHARE

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


	Years ended December 31,
	2011			2010			2009
	(in 000's except per share data)
*Basic*
Numerator:
Loss available for common shareholders	$	(1,577	)	$	(1,560	)	$	(3,776	)

Denominator:
Weighted average shares outstanding		6,467			6,450			6,464

Loss per common share – basic	$	(0.24	)	$	(0.24	)	$	(0.58	)

*Diluted*
Numerator:
Net loss	$	(1,577	)	$	(1,560	)	$	(3,776	)

Denominator:
Weighted average shares outstanding		6,467			6,450			6,464
Effect of dilutive securities:
Employee stock options		—			—			—

Weighted average shares outstanding – Diluted		6,467			6,450			6,464

Loss per common share – diluted	$	(0.24	)	$	(0.24	)	$	(0.58	)

Options to purchase 607,543, 1,043,779 and 1,161,710 shares of common stock for the years ended December 31, 2011, 2010 and 2009, respectively, were not included in the computation of diluted earnings per common share, because the assumed proceeds per share were greater than the average market price, and therefore, were anti-dilutive. The dilutive effect of 200,742, 322,229 and 15,633 options with assumed proceeds per share less than the average market price, were not included for the years ended December 31, 2011, 2010 and 2009, respectively, because the effect would be anti-dilutive due to the Company's net loss for those periods.