WEIGHTED AVERAGE COMMON SHARES

12 Months Ended

Dec. 31, 2016

WEIGHTED AVERAGE COMMON SHARES [Abstract]

3.	WEIGHTED AVERAGE COMMON SHARES

The weighted average number of common shares used to compute basic and diluted income per share for the years ended December 31, 2016, 2015 and 2014, respectively were as follows:

	Year Ended December 31,
	2016		2015		2014
Basic shares outstanding		23,453,427		23,166,977		22,814,105
Dilutive effect of stock options		-		60,161		-
Diluted shares outstanding		23,453,427		23,227,138		22,814,105

For the year ended December 31, 2016 and 2014, options to acquire 773,078; and 119,722 shares were excluded from the above table because the Company reported a net loss for the year and therefore their impact on reported loss per share would have been antidilutive. For the years ended December 31, 2016, 2015 and 2014, options to acquire 218,167; 391,935; and 795,985 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) earnings per share would have been antidilutive.

In 2014 and 2013, the Company issued certain members of management performance shares that vest when certain performance conditions are met. As of December 31, 2016, 2015 and 2014 none of these performance conditions were met. Accordingly, 73,827; 152,837; and 360,402 shares of outstanding performance shares have been excluded from the computation of diluted earnings per share for the year ended December 31, 2016, 2015 and 2014, respectively. Refer to Note 9 for more information on performance shares.