Earnings per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

12. Earnings per Share

Basic earnings per share are based upon weighted average number of shares of common stock outstanding during each period. Diluted earnings per share are based upon the weighted average number of shares of common stock outstanding during each period, plus potential dilutive shares of common stock from assumed exercise of the outstanding stock options using the treasury stock method and assumed conversion of subordinated debt.

The following table sets forth the computation of basic and diluted earnings per share.

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Numerator:
Net income	$	367	$	1,168	$	452	$	1,999
Add back of interest on convertible subordinated debt, net of taxes		-		185		-		371
Add back of amortization of discount on convertible subordinated debt, net of taxes		-		87		-		175
Adjustment for change in value of convertible note derivative, net of taxes		-		(121)		-		30
Numerator for diluted earnings per share	$	367	$	1,319	$	452	$	2,575
Denominator:
Weighted average shares outstanding-basic		8,586		9,230		8,585		9,205
Dilutive effect of stock options		285		193		275		197
Dilutive effect of convertible subordinated debt				2,694				2,694
Weighted average shares outstanding-diluted		8,871		12,117		8,860		12,096
Basic Earnings per Share	$	0.04	$	0.13	$	0.05	$	0.22
Diluted Earnings per Share	$	0.04	$	0.11	$	0.05	$	0.21

 In computing diluted earnings per share for the three and six months ended June 30 2013, no effect has been given to the 2,965 common shares issuable upon conversion of subordinated debt as the effect thereof is anti-dilutive.