(LOSS) EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2015

(LOSS) EARNINGS PER SHARE [Abstract]

(LOSS) EARNINGS PER SHARE

Note 3. (LOSS) EARNINGS PER SHARE

The consolidated financial statements include basic and diluted (loss) earnings per share. Diluted per share information is calculated by considering the impact of potential common stock on the weighted average shares outstanding. Potential common stock consists of (a) incremental shares that would be available for issuance upon the assumed exercise of stock options “in the money” based on the average stock price for the respective period and (b) convertible preferred shares, owned by Kohlberg & Co. LLC (see Note 9), accounted for using the “if converted” basis, which assumes their conversion to common stock at a ratio of 16.6:1. The basic and diluted earnings per share (“EPS”) calculations are as follows as of the years ended December 31, (amounts in thousands, except share data):

	2015			2014
Net (loss) income	$	(7,960	)	$	2,485
Average common shares outstanding - Basic		7,951			7,951
Dilutive effect of convertible preferred stock		-			18,859
Average common shares outstanding - Diluted		7,951			26,810
(Loss) earnings per share of common stock - Basic	$	(1.00	)	$	0.31
(Loss) earnings per share of common stock - Diluted	$	(1.00	)	$	0.09

As of December 31, 2015, all options had expired. As of December 31, 2014, no options were in the money and 6,000 options were out of the money. At December 31, 2015 and December 31, 2014, 1,131,551 convertible preferred shares were outstanding, which are in total, convertible into 18,859,183 shares of the Company’s common stock. Convertible preferred shares were not included in the calculation of diluted (loss) earnings per share for the year ended December 31, 2015 because of their anti-dilutive impact as a result of the Company’s net loss position.