8.	Loss Per Share

Basic loss per common share is based on the weighted average number of common shares outstanding in each period and earnings adjusted for preferred stock dividend requirements. Diluted earnings per common share assumes that any dilutive convertible preferred shares outstanding at the beginning of each period were converted at those dates, with related interest, preferred stock dividend requirements and outstanding common shares adjusted accordingly. It also assumes that outstanding common shares were increased by shares issuable upon exercise of those stock options and warrants for which market price exceeds exercise price, less shares which could have been purchased by the Company with related proceeds. The convertible preferred stock and outstanding stock options and warrants were not included in the computation of diluted earnings per common share for the three months ended September 30, 2014 and 2013, respectively since it would have resulted in an antidilutive effect.

The following table sets forth the computation of basic and diluted loss per share (in thousands, except per share data):

	Three Months Ended						Nine Months Ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
Numerator
Basic and diluted loss	$	(1,436	)	$	(1,390	)	$	(2,498	)	$	(3,677	)

Denominator
Basic and diluted earnings per share - weighted average shares outstanding		4,365,383			1,452,548			3,092,453			1,452,303

Basic and diluted income (loss) per common share	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Anti-dilutive securities (based on conversions to common shares) not included in net loss per share calculation (in thousands):

	September 30, 2014		December 31, 2013
Convertible Series A preferred stock		448		448
Convertible Series B preferred stock		27,248		424,532
Convertible Series S preferred stock		750,000		1,000,000
Convertible Series H preferred stock		-		482,625
Stock warrants		122,500		208,850
Convertible debt		242,639		258,601
Common stock options		188,850		177,600
Series B preferred stock options		207,000		250,000