WEIGHTED AVERAGE COMMON SHARES

6 Months Ended

Jun. 30, 2015

WEIGHTED AVERAGE COMMON SHARES [Abstract]

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, 2015 and 2014 was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Basic shares outstanding		23,131,856		22,800,471		23,094,040		22,761,811
Dilutive effect of stock options		-		-		-		-
Diluted shares outstanding		23,131,856		22,800,471		23,094,040		22,761,811

For the three months ended June 30, 2015 and 2014, options to acquire 6,799 and 55,144 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, 2015 and 2014, options to acquire 51,673 and 116,053 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, 2015 and 2014, options to acquire 540,567 and 485,625 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 each of 2011, 2013 and 2014, the Company issued performance shares that vest when certain performance conditions are satisfied. As of June 30, 2015, these performance conditions were not met. As a result, the Company has determined these shares to be contingently issuable. Accordingly, 152,837 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, 2015, and 418,408 shares have been excluded for the three and six months ended June 30, 2014. Refer to Note 6 for more information on performance shares.