2. Net Loss Per Common Share

6 Months Ended

Jun. 30, 2014

Net Loss Per Common Share

2. 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 and six months ended June 30, 2014 and 2013 was the same as basic net loss per common share, as the common share equivalents were anti-dilutive.  The following table sets forth the computation of basic and diluted net income (loss) per common share:

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Net loss (in thousands)	$	(1,494	)	$	(1,070	)	$	(3,126	)	$	(1,468	)
Weighted-average share reconciliation:
Weighted-average shares outstanding		11,173,762			10,682,393			11,043,770			10,675,990
Weighted-average basic shares outstanding		11,173,762			10,682,393			11,043,770			10,675,990
Dilutive employee stock options		-			-			-			-
Diluted shares outstanding		11,173,762			10,682,393			11,043,770			10,675,990
Net (loss) income per common share:
Basic	$	(0.13	)	$	(0.10	)	$	(0.28	)	$	(0.14	)
Diluted	$	(0.13	)	$	(0.10	)	$	(0.28	)	$	(0.14	)

Outstanding stock options are not included in the computation of diluted loss per share because the Company has a net loss and the inclusion of such shares would be anti-dilutive due to the net loss. At June 30, 2014 and 2013, the outstanding stock options were 2,310,890 and 2,300,571, respectively.