Basic and Diluted Income (Loss) Per Common Share

6 Months Ended

Jun. 30, 2011

Basic and Diluted Income (Loss) Per Common Share

Basic and Diluted Income (Loss) Per Common Share

3.   Basic and Diluted Income (Loss) Per Common Share

Basic income (loss) per share is based on the weighted average number of outstanding common shares for the period.  Diluted income (loss) per share adjusts the weighted average shares outstanding for the potential dilution that could occur if stock options or warrants were exercised into common stock.  The number of common shares and common share equivalents used in the determination of basic and diluted income per share were as follows:

(in thousands, except for share amounts)	Three months ended					Six months ended
	June 30,					June 30,
	2011			2010		2011		2010
Numerator:
Net income (loss)	$	(244	)	$	370	$	769	$	819
Denominator:
Weighted-average shares outstanding for basic
earnings per share		19,213,931			18,944,843		19,213,886		18,940,148
Effect of dilutive securities:
Employee stock options and warrants		-			577,429		242,179		591,682
Adjusted weighted-average shares outstanding
and assumed conversions for diluted
earnings per share		19,213,931			19,522,272		19,456,065		19,531,830
Shares related to dilutive securities excluded
because inclusion would be anti-dilutive		1,698,596			1,195,233		1,544,504		1,181,791

               Conversion of outstanding stock options was not assumed for the three months ended June 30, 2011 because the impact was anti-dilutive. Included in the shares related to dilutive securities excluded from the diluted earnings per share calculation for the three months ended June 30, 2011 were in the money options totaling 153,396 shares.