7. COMPUTATION OF LOSS PER SHARE

6 Months Ended

Jun. 30, 2013

Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]

7. COMPUTATION OF LOSS PER SHARE

Shares outstanding and per share data have been adjusted to give effect to the one-for-seven reverse stock split implemented on August 16, 2012 as described in note 5 above.

The Company computes basic loss per share using the weighted average number of common shares outstanding during the period. The Company computes diluted loss per share using the weighted average number of common and dilutive common equivalent shares outstanding during the period. Common equivalent shares consist of the incremental common shares issuable upon the exercise of stock options. Common equivalent shares are excluded from the calculation if their effect is anti-dilutive.

Computations of basic and diluted loss per share for the periods presented are as follows (in thousands, except per share amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Net loss	$	(406	)	$	(346	)	$	(1,330	)	$	(963	)
Basic weighted average number of common shares outstanding		6,022			5,983			6,023			5,969
Effect of dilutive stock options		–			–			–			–
Total basic weighted average number of common shares and dilutive stock options		6,022			5,983			6,023			5,969
Basic and diluted net loss	$	(0.07	)	$	(0.06	)	$	(0.22	)	$	(0.16	)

The following table summarizes the number of outstanding stock options excluded from the calculation of diluted loss per share for the periods presented because the result would have been anti-dilutive (in thousands, except weighted average exercise price):

	Three and Six Months  Ended June 30,
	2013		2012
Number of anti-dilutive stock options		787		916
Weighted average exercise price	$	5.74	$	6.16