WEIGHTED AVERAGE COMMON SHARES

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 2016 and 2015 was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Basic shares outstanding		23,498,904		23,230,438		23,433,015		23,140,006
Dilutive effect of stock options		1,181,073		39,197		-		-
Diluted shares outstanding		24,679,977		23,269,635		23,433,015		23,140,006

For the nine months ended September 30, 2016 and 2015, options to acquire 668,307 and 47,015 shares, respectively, were excluded from the above table because the Company recorded a net loss for each quarter and, therefore, their impact on reported loss per share would have been antidilutive. For the three and nine months ended September 30, 2016, options to acquire 224,667 shares 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 income (loss) per share would have been antidilutive. For the three and nine months ended September 30, 2015, options to acquire 540,567 shares 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 income (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 September 30, 2016, these performance conditions were not met for most of these shares. As a result, the Company has determined that most of these shares are contingently issuable. Accordingly, 998,827 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, 2016, and 152,837 shares have been excluded for the three and nine months ended September 30, 2015. Refer to Note 6 for more information on performance shares.