3. Net Income (Loss) Per Common Share

3 Months Ended

Mar. 31, 2013

Net Income Loss Per Common Share

3. Net Income (Loss) Per Common Share

(3)           Net Income (Loss) Per Common Share

Basic net income (loss) per common share is computed by dividing the net income (loss) for the period by the weighted-average number of common shares outstanding during the period. Diluted net income per common share is computed giving effect to all dilutive common stock equivalents, consisting of common stock options and restricted shares held in escrow. Diluted net loss per common share for the three months ended March 31, 2013 was the same as basic net loss per common share, as the common share equivalents were anti-dilutive.  Diluted net income per common share for the three months ended March 31, 2012 included 29,207 common share equivalents related to shares to be purchased under our Company’s employee stock option plan and 7,000 restricted shares held in escrow. The following table sets forth the computation of basic and diluted net income (loss) per common share:

	Three Months Ended March 31,
	2013			2012
Net income (loss) (in thousands)	$	(398	)	$	197
Weighted-average share reconciliation:
Weighted-average shares outstanding		10,669,513			10,537,066
Weighted-average restricted shares held in escrow		-			(7,000	)
Weighted-average basic shares outstanding		10,669,513			10,530,066
Dilutive employee stock options		-			29,207
Dilutive restricted shares held in escrow		-			7,000
Diluted shares outstanding		10,669,513			10,566,273
Net income (loss) per common share:
Basic	$	(0.04	)	$	0.02
Diluted	$	(0.04	)	$	0.02

The following table includes the number of common stock equivalent shares that are not included in the computation of diluted income (loss) per share.

	Three Months ended March 31,
	2013		2012
Total outstanding stock options		2,285,620		1,051,321