Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share:

Earnings Per Share

10.   LOSS PER SHARE

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 loss 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 loss per share, weighted average numbers of shares outstanding are used as the denominator.

The Company had net loss allocable to common stockholders for the three and nine months ended September 30, 2013 and 2012.  Loss per share is computed as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Numerator:
Net loss available to common     shareholders basic and diluted	$	(156,000	)	$	(1,297,000	)	$	(2,279,000	)	$	(1,121,000	)
Denominator:
Weighted average shares used to compute net loss available to common shareholders per  common share-basic		3,594,000			3,575,000			3,594,000			3,570,000
Preferred shares assumed to be converted to common		-			-			-			-
Effect of dilutive stock options		-			-			-			-
Weighted average shares used to compute net loss available to shareholders per common  share-dilutive		3,594,000			3,575,000			3,594,000			3,570,000
Basic  and diluted net loss per share to common shareholder	$	(0.04	)	$	(0.36	)	$	(0.63	)	$	(0.31)

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 and nine months ended September 30, 2013 and 2012, as the inclusion of these options would have been antidilutive.