NET (LOSS) INCOME PER COMMON SHARE

6 Months Ended

Jun. 30, 2011

NET (LOSS) INCOME PER COMMON SHARE [Abstract]

NET (LOSS) INCOME PER COMMON SHARE

10. NET (LOSS) INCOME PER COMMON SHARE

Basic net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of common shares outstanding during the periods. Fully diluted net (loss) income per common share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the periods. Common equivalent shares consist of stock options that are computed using the treasury stock method.

The following table reconciles the differences between the basic and fully diluted earnings per share presentations:

	Three Months Ended June 30,					Six Months Ended June 30,
	2011			2010		2011			2010
Numerator:
Net (loss) income	$	(103,314	)	$	336,315	$	(339,702	)	$	634,700
Denominator:
Weighted average common shares outstanding:
Basic		19,471,342			19,148,074		19,385,081			19,084,107
Stock options		-			261,080		-			237,694
Fully diluted		19,471,342			19,409,154		19,385,081			19,321,801
Net (loss) income per common share:
Basic	$	(0.01	)	$	0.02	$	(0.02	)	$	0.03
Fully diluted	$	(0.01	)	$	0.02	$	(0.02	)	$	0.03

For the three and six months ended June 30, 2011 and 2010, stock options to purchase approximately 781,000 and 306,000 shares, respectively, were excluded from the computation of fully diluted net (loss) income per common share because the exercise price of the stock options was greater than the average market price of the common shares or the effect of inclusion of such amounts would be anti-dilutive to net (loss) income per common share.