7. EARNINGS PER COMMON SHARE

12 Months Ended

Dec. 31, 2012

Earnings Per Common Share

NOTE 7: EARNINGS PER COMMON SHARE

The following is a reconciliation of the number of shares used in the basic and diluted net earnings or loss per common share calculation:

	Year Ended
	December 31,
	2012			2011
Numerator:
Net (loss) income	$	(2,454	)	$	2,137
Denominator:
Weighted average number of common shares outstanding		10,185			10,306
Effect of dilutive securities		–			–
Denominator for diluted earnings per share		10,185			10,306
Net (loss) income per common share outstanding, basic and diluted	$	(0.24	)	$	0.21

At December 31, 2012 and 2011, there were outstanding warrants convertible to 6 and 22 shares of common stock, respectively. At December 31, 2012 and 2011, there were outstanding stock options convertible to 1,008 and 1,063 shares of common stock, respectively. For the years ended December 31, 2012 and 2011, there were no potentially dilutive common stock equivalents that were included in the computation of diluted net earnings or loss per common share because the exercise price for the outstanding warrants and options exceeded the average market price for our common stock.