(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