WEIGHTED AVERAGE COMMON SHARES

9 Months Ended

Sep. 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 nine months ended September 30, 2014 and 2013 was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Basic shares outstanding		22,843,247		22,528,478		22,789,254		22,480,308
Dilutive effect of stock options		-		282,678		-		-
Diluted shares outstanding		22,843,247		22,811,156		22,789,254		22,480,308

For the three months ended September 30, 2014 and 2013, options to acquire 132,595 and 282,678 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 nine months ended September 30, 2014 and 2013, options to acquire 121,269 and 234,073 shares, respectively, were excluded from the above table because the Company reported a net loss for this period and therefore their impact on reported loss per share would have been antidilutive.  For the three and nine months ended September 30, 2014 and 2013, options to acquire 476,625 and 785,768 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 September 30, 2014, these performance conditions were not met.  As a result, the Company has determined these shares to be contingently issuable.  Accordingly, 398,250 shares of outstanding performance shares have been excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2014, and 441,552 shares have been excluded for the three and nine months ended September 30, 2013.  Refer to Note 6 for more information on performance shares.