NET INCOME (LOSS) PER COMMON SHARE

9 Months Ended

Sep. 30, 2011

NET INCOME (LOSS) PER COMMON SHARE [Abstract]

10.	NET INCOME (LOSS) PER COMMON SHARE

Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the periods. Fully diluted net income (loss) 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 September 30,				Nine Months Ended September 30,
	2011		2010		2011			2010
Numerator:
Net income (loss)	$	109,655	$	511,952	$	(230,047	)	$	1,146,652

Denominator:
Weighted average common shares outstanding:
Basic		19,540,214		19,261,941		19,437,360			19,144,036
Stock options		251,003		253,609		-			248,608
Fully diluted		19,791,217		19,515,550		19,437,360			19,392,644

Net income (loss) per common share:
Basic	$	0.01	$	0.03	$	(0.01	)	$	0.06
Fully diluted	$	0.01	$	0.03	$	(0.01	)	$	0.06

For the three months ended September 30, 2011 and 2010, stock options to purchase approximately 461,000 and 294,000 shares, respectively, were excluded from the computation of fully diluted net income (loss) 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 income (loss) per common share. For the nine months ended September 30, 2011 and 2010, stock options to purchase approximately 871,000 and 301,000 shares, respectively, were excluded from the computation of fully diluted net income (loss) 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 income (loss) per common share.