WEIGHTED AVERAGE COMMON SHARES

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2013 and 2012 was as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Basic shares outstanding		22,497,013		22,183,043		22,455,586		22,160,053
Dilutive effect of stock options		-		-		-		-
Diluted shares outstanding		22,497,013		22,183,043		22,455,586		22,160,053

For the three months ended June 30, 2013 and 2012, options to acquire 199,569 and 27,995 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 six months ended June 30, 2013 and 2012, options to acquire 210,407 and 27,995 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 and six months ended June 30, 2013 and 2012, options to acquire 803,775 and 304,333 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.

In 2011 and 2013, the Company issued performance shares that vest when certain performance conditions are satisfied.  As of June 30, 2013, these performance conditions were not met.  As a result, the Company has determined these shares to be contingently issuable.  Accordingly, 448,737 shares of outstanding performance shares have been excluded from the computation of diluted earnings per share for the three and six months ended June 30, 2013, and 100,602 shares have been excluded for the three and six months ended June 30, 2012.  Refer to Note 7 for more information on performance shares.