11. EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2013

Earnings Per Common Share

NOTE 11: EARNINGS PER COMMON SHARE

Basic earnings per share (“EPS”) is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted EPS is calculated by dividing net income (loss) by the weighted-average number of common shares and dilutive common stock equivalents (warrants, stock awards and stock options) outstanding during the period. Diluted EPS reflects the potential dilution that could occur if options to purchase common stock were exercised for shares of common stock.

At March 31, 2013 and 2012, there were outstanding warrants convertible to 0 and 22 shares of common stock, respectively. At March 31, 2013 and 2012, there were outstanding stock options convertible to 1,008 and 1,046 shares of common stock, respectively. There were no potentially dilutive securities for the three months ended March 31, 2013 and 2012 that were included in the computation of diluted earnings per share because their effect would have been anti-dilutive, as the exercise price for the outstanding warrants and options exceeded the average market price for our common stock.