WEIGHTED AVERAGE COMMON SHARES

3 Months Ended

Mar. 31, 2016

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 months ended March 31, 2016 and 2015 was as follows:

	Three Months Ended March 31,
	2016	2015
Basic shares outstanding	23,351,192	23,055,803
Dilutive effect of stock options	-	-
Diluted shares outstanding	23,351,192	23,055,803

For the three months ended March 31, 2016 and 2015, options to acquire 220,194 and 96,968 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 months ended March 31, 2016 and 2015, options to acquire 316,525 and 758,338 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 2013 and 2014, the Company issued performance shares that vest when certain performance conditions are satisfied. As of March 31, 2016, these performance conditions were not met for most of these shares. As a result, the Company has determined most of these shares to be contingently issuable. Accordingly, 73,827 shares of outstanding performance shares have been excluded from the computation of diluted earnings per share for the three months ended March 31, 2016, and 226,106 shares have been excluded for the three months ended March 31, 2015. Refer to Note 6 for more information on performance shares.