WEIGHTED AVERAGE COMMON SHARES

6 Months Ended

Jun. 30, 2014

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, 2014 and 2013 was as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Basic shares outstanding		22,800,471		22,497,013		22,761,811		22,455,586
Dilutive effect of stock options		-		-		-		-
Diluted shares outstanding		22,800,471		22,497,013		22,761,811		22,455,586

For the three months ended June 30, 2014 and 2013, options to acquire 55,144 and 199,569 shares, respectively, were excluded from the above table because the Company reported a net loss for each quarter and therefore their impact on reported loss per share would have been antidilutive.  For the six months ended June 30, 2014 and 2013, options to acquire 116,053 and 210,407 shares, respectively, were excluded from the above table because the Company reported a net loss for each quarter and therefore their impact on reported loss per share would have been antidilutive.  For the three and six months ended June 30, 2014 and 2013, options to acquire 485,625 and 803,775 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, 2014, these performance conditions were not met.  As a result, the Company has determined these shares to be contingently issuable.  Accordingly, 418,408 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, 2014, and 448,737 shares have been excluded for the three and six months ended June 30, 2013.  Refer to Note 6 for more information on performance shares.