Earnings Per Common Share

9 Months Ended

Sep. 30, 2015

2. Earnings per Common Share

Basic earnings per share is computed by dividing net income (loss) attributable to common stockholders by the number of shares of common stock outstanding for the three and nine months ended September 30, 2015 and 2014.

Diluted earnings per share is computed by dividing net income (loss) attributable to common stockholders, by the sum of (1) the weighted-average number of shares of common stock outstanding during the period, (2) the dilutive effect of the assumed exercise of convertible instruments and (3) the dilutive effect of the exercise of stock options and other stock units to our common stock.

When convertible preferred stocks are assumed converted then dividends are added back to the earnings in the calculation of diluted earnings per share.

For the three months ended September 30, 2015 and 2014, common stock equivalents from convertible instruments, stock options and other stock units have been excluded from the calculation of weighted average diluted shares because all such instruments were anti-dilutive. For the nine months ended September 30, 2014, common stock equivalents from convertible instruments, stock options and other stock units have been excluded from the calculation of weighted average diluted shares because all such instruments were anti-dilutive.

The following tables set forth the computation of basic and diluted common shares.

Continuing Operations
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Weighted average basic shares		8,252,396		8,180,970		8,236,212		8,137,133
Dilutive effect of preferred stock, warrants, stock options and restricted stock units *		-		-		1,041,717		-
Total weighted average diluted shares		8,252,396		8,180,970		9,277,929		8,137,133



With Discontinued Operations
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Weighted average basic shares		8,252,396		8,180,970		8,236,212		8,137,133
Dilutive effect of preferred stock, warrants, stock options and restricted stock units *		-		-		1,041,717		-
Total weighted average diluted shares		8,252,396		8,180,970		9,277,929		8,137,133

* When preferred shares are assumed converted, their dividends are added back to net income.