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4. Earnings Per Share
 6 Months Ended
Jun. 30, 2014
Earnings Per Share [Abstract]  
4. Earnings Per Share

Basic net income (loss) per share has been computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share has been computed using the weighted-average number of shares of common stock and dilutive potential common shares from options and warrants outstanding during the period. In periods with net losses, normally dilutive shares become anti-dilutive, and therefore for those periods basic and dilutive earnings per share are the same.

 

The following table sets forth the computation of the basic and diluted net loss per share for the periods indicated (in thousands, except per share amounts):

 

   Three months ended June 30,   Six months ended June 30, 
   2014   2013   2014   2013 
     
Numerator:                    
Net income (loss)  $1,919   $(282)  $2,004   $(1,276)
Denominator:                    

Weighted average shares used to compute net income (loss) per share

                    
Basic   14,785    271    13,794    268 
Effective of dilutive options and warrants   856    –    826    – 
Diluted   15,642    271    14,621    268 
Net income (loss) per share                    
Basic  $0.13   $(1.04)  $0.15   $(4.77)
Diluted  $0.12   $(1.04)  $0.14   $(4.77)

  

The following potentially dilutive securities were excluded from the computation of diluted net income (loss) per share as their effect would have been anti-dilutive (in thousands):

 

   Three months ended June 30,   Six months ended June 30, 
   2014   2013   2014   2013 
                 
Employee stock options   –    736    –    736 
Preferred stock warrants   –    56    –    56 
Restricted stock units   –    –    –    – 
    –    792    –    792