NOTE 14 – NET LOSS PER SHARE

Basic EPS is computed by dividing net income or loss by the weighted average common shares outstanding during a period, including shares weighted related to vested Restricted Stock Units (“RSUs”) (see Note 12). Diluted EPS is based on the treasury stock method and computed based on the same number of shares used in the basic share calculation and includes the effect from potential issuance of common stock, such as shares issuable pursuant to the exercise of stock options and stock warrants, assuming the exercise of all in-the-money stock options and warrants. Common stock equivalents are excluded from the computation where their inclusion would be anti-dilutive. No such adjustments were made for 2018 as the Company reported a net loss for the three month period, and including the effects of the common stock equivalents in the diluted EPS calculations would have been antidilutive. The weighted-average common shares outstanding diluted computation is not impacted during any period where the exercise price of a stock option or common stock warrant is greater than the average market price.

A reconciliation of the numerators and denominators of basic and diluted EPS consisted of the following:

	Three months Ended March 31,
	2018		2017
	(in thousands except per share data)
EPS - basic
Numerator: net (loss) income	$	(1,494)	$	405
Denominator:
Common shares		21,033		11,881
RSUs – vested		1		26
Basic weighted average shares outstanding		21,034		11,907
EPS – basic	$	(0.07)	$	0.03

EPS – assuming dilution
Numerator: net (loss) income	$	(1,494)	$	405
Denominator:
Common shares		21,033		11,881
RSUs – vested and nonvested		1		202
Stock options		-		-
Common stock warrants		-		-
Diluted weighted average shares outstanding		21,034		12,083
EPS – diluted	$	(0.07)	$	0.03

Excluded securities:
Common stock issuable:
Stock options – vested and nonvested		1,482		1,396
Common stock warrants		1,842		60
RSUs – nonvested		401		-
Total excluded potentially dilutive shares		3,725		1,456