11. EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 2014

Net (loss) 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 (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 September 30, 2014 and 2013, there were outstanding stock options convertible to 325 and 945 shares of common stock, respectively. There were no dilutive securities included in the computation of diluted earnings per share for the three and nine months ended September 30, 2014 because either the average market prices of our common stock were below the option exercise prices, or if the average market prices were higher than the option exercise prices, the dilution calculation yielded a result that added no additional shares.