11. EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2014

Net income per share:

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, 2014 and 2013, there were outstanding stock options convertible to 825 and 1,008 shares of common stock, respectively. There were no potentially dilutive securities for the three months ended March 31, 2014 and 2013 that were included in the computation of diluted earnings per share because their inclusion would be anti-dilutive.