Basic and Diluted Earnings Per Share

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Basic and Diluted Earnings Per Share

16. Basic and Diluted Earnings Per Share

Basic and diluted earnings per common share are calculated based on the weighted average number of shares outstanding during the period. Dilutive potential common shares consist of incremental shares issuable upon exercise of certain stock options or warrants as applicable. Certain of the Company’s employee and director stock options and warrants have been excluded from the calculation of diluted earnings per share since they are anti-dilutive. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
Numerator:
Net earnings from continuing operations	$	203	$	658	$	1,883	$	1,629
Denominator:
Weighted average basic shares outstanding		5,907		5,907		5,907		5,861
Effect of dilutive securities -- employee and director stock option awards		-		-		-		-
Net dilutive effect of warrants outstanding		74		67		66		54
Denominator for diluted earnings per common share		5,982		5,974		5,973		5,915
Earnings per common share basic and diluted:
Basic	$	0.03	$	0.11	$	0.32	$	0.28
Diluted	$	0.03	$	0.11	$	0.32	$	0.28