WEIGHTED AVERAGE COMMON SHARES

3 Months Ended

Mar. 31, 2013

WEIGHTED AVERAGE COMMON SHARES [Abstract]

WEIGHTED AVERAGE COMMON SHARES

2. WEIGHTED AVERAGE COMMON SHARES

The weighted average number of common shares used to compute basic and diluted loss per share for the three months ended March 31, 2013 and 2012 was as follows:

	Three Months Ended
	March 31,
	2013		2012
Basic shares outstanding		22,413,699		22,137,061
Dilutive effect of stock options		-		-
Diluted shares outstanding		22,413,699		22,137,061

For the three months ended March 31, 2013 and 2012, options to acquire 221,705 and 78,301 shares, respectively, were excluded from the above table because the Company reported a net loss for the quarter and therefore their impact on reported loss per share would have been antidilutive.  For the three months ended March 31, 2013 and 2012, options to cquire 144,471 and 313,333 shares, respectively, were excluded from the above table because they have an exercise price that is greater than the average market price of the Company's common stock and therefore their impact on reported loss per share would have been antidilutive.

On April 29, 2011, the Company issued certain employees performance shares that vest when certain performance conditions are met.  These performance conditions were not met as of December 31, 2012 with respect to the Company's performance shares.  As a result, the Company has determined these shares to be contingently issuable.  Accordingly, 100,602 shares of outstanding performance shares have been excluded from the computation of diluted earnings per share for the three months ended March 31, 2013 and 2012.  Refer to Note 7 for more information on performance shares.