NOTE 10 – NET LOSS PER SHARE

We compute net loss per share based on the weighted average number of common shares outstanding for the period. Diluted net loss per share reflects the maximum dilution that would have resulted from incremental common shares issuable upon the exercise of stock options. We compute the number of common share equivalents, which includes stock options, using the treasury stock method. We have excluded stock options to acquire 1,394,000 shares for the three and six months ended June 30, 2018, and 857,000 shares for the six months ended June 30, 2017 from the computation of the dilutive stock options because the effect of including the stock options would have been anti-dilutive.

The following table sets forth the computation of basic and diluted net income (loss) per common share for the three and six months ended June 30, 2018 and June 30, 2017:

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2018			2017			2018			2017
Net income (loss)	$	(3,768	)	$	(1,837	)	$	(5,693	)	$	(2,896	)

Weighted-average shares of common stock outstanding		12,939,000			9,980,000			12,762,000			9,307,000
Dilutive effect of employee stock options		-			-			-			-
Weighted average shares for diluted net income (loss) per share		12,939,000			9,980,000			12,762,000			9,307,000
Basic net income (loss) per share	$	(0.29	)	$	(0.18	)	$	(0.45	)	$	(0.31	)
Diluted net income (loss) per share	$	(0.29	)	$	(0.18	)	$	(0.45	)	$	(0.31	)