Note

Net

Income

Per-Share

Basic and diluted income per share are based on the weighted average number of shares of common stock and potential common stock outstanding during the period. Potential common stock, for the purposes of determining diluted income per share, includes the effects of dilutive unvested restricted stock, options to purchase common stock and convertible securities. The effect of such potential common stock is computed using the treasury stock method or the if-converted method, as applicable.

The following table presents a reconciliation of the numerators and denominators of the basic and diluted income per share computations for income from continuing operations. In the table below, income represents the numerator and shares represents the denominator (in thousands except per share amounts).

	Three Months Ended March 31 ,
	201 8		201 7

Basic net income per share :
Numerator:
Net income	$	81	$	254
Denominator:
Weighted-average shares of common stock outstanding		15,969		15,526

Basic net income per share	$	0.01	$	0.02

Diluted net income per share :
Numerator:
Net income	$	81	$	254
Plus interest expense on convertible debt		-		2
	$	81	$	256
Denominator:
Weighted-average shares of common stock outstanding		15,969		15,526
Dilutive options and warrants outstanding		2,910		-
Effect of conversion of convertible notes		-		13
Number of shares used in diluted per-share computation		18,879		15,539

Diluted net income per share	$	0.00	$	0.02

For the

three

-month periods ended

March 31, 2018

and

2017

potentially dilutive shares of

400,000

and

3,282,000,

respectively, were excluded from the calculation of dilutive shares because their effect would have been anti-dilutive in those periods.