Calculation of Basic and Diluted Earnings per Share

12 Months Ended

Dec. 31, 2013

Calculation of Basic and Diluted Earnings per Share (Tables)

Calculation of Basic and Diluted Earnings per Share

9. Calculation of Basic and Diluted Earnings per Share

(in thousands, except per share amounts)		Years Ended December 31,
		2013		2012
Numerator:
Net Income (Loss)	$	(1,616)	$	5,028
Numerator for basic earnings per share- income (loss) available to common shareholders		(1,616)		5,028
Effect of dilutive securities:
6% Convertible Debenture Interest Expense		-		22
Numerator for diluted earnings per share - income (loss)available to common shareholders after assumed conversions	$	(1,616)	$	5,050
Denominator:
Denominator for basic earnings per share- weighted-average shares		3,002		2,781
Effect of dilutive securities:
Employee stock options		-		30
Warrants		-		447
6% Convertible Debentures		-		136
Dilutive potential common shares		-		613
Denominator for diluted earnings per share -weighted-average shares and assumed conversions		3,002		3,394
Basic earnings per common share	$	(0.54)	$	1.81
Diluted earnings per common share	$	(0.54)	$	1.49

For the year ended December 31, 2013, 528,304 warrants were excluded from the calculation of diluted earnings per share as the effect would anti-dilutive.  For the year ended December 31, 2012, there were no warrants excluded from the calculation of diluted earnings per share.

For the years ended December 31, 2013, 131,164 employee stock options were excluded from calculation of diluted earnings per share as the effect would be anti-dilutive.  For the year ended December 31, 2012, 77,820 of shares issuable upon the exercise of employee stock options were excluded from the calculation of diluted earnings per share as the exercise price was greater than the average market price of the common shares and, therefore, the effect would be anti-dilutive.