Earnings Per Share

3 Months Ended

Sep. 30, 2011

Earnings Per Share

Earnings Per Share [Text Block]

8.     EARNINGS (LOSS) PER SHARE

Earnings (loss) per share is computed on the basis of the weighted average number of shares and common stock equivalents outstanding during the period.  In the calculation of diluted earnings per share, shares outstanding are adjusted to assume conversion of the Company’s non-interest bearing convertible stock and exercise of options as if they were dilutive.  In the calculation of basic earnings (loss) per share, weighted average numbers of shares outstanding are used as the denominator.

In the calculation of basic earnings per share, weighted average numbers of shares outstanding are used as the denominator.  The Company had net income allocable to the common stockholders for the three months ended September 30, 2011 and a net loss allocable to common stockholders for the three months ended September 30, 2010 and for the nine months ended September 30, 2011 and 2010.  Earnings (loss) per share is computed as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
		2011		2010			2011			2010
Numerator:
Net income (loss) allocable to common    stockholders  (A)	$	174,000	$	(581,000	)	$	(107,000	)	$	(3,082,000	)
Denominator:
Weighted average shares used to compute net      earnings (loss) allocable to common     stockholders per common share-basic  (B)		3,567,000		3,555,000			3,561,000			3,555,000
Conversion of preferred shares to common    stock		826,000		-			-			-
Effect of dilutive stock options		9,000		-			-			-
Weighted average shares used to compute net    earnings (loss) allocable to common    stockholders per common share-dilutive (C)		4,402,000		3,555,000			3,561,000			3,555,000
Basic net earnings (loss) per share to common    stockholders  (A/B)	$	0.05	$	(0.16	)	$	(0.03	)	$	(0.87	)
Diluted net earnings (loss) per share to common    stockholders   (A/C)	$	0.04	$	(0.16	)	$	(0.03	)	$	(0.87	)

All options outstanding to purchase shares of common stock and shares of common stock issued on the assumed conversion of the eligible preferred stock were excluded from the diluted loss per common share calculation for the three months ended September 30, 2010 and the nine months ended September 30, 2011 and 2010 as the inclusion of these options would have been antidilutive.