(2) BASIC AND DILUTED EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 2011

(2)	BASIC AND DILUTED EARNINGS PER COMMON SHARE

The Company computes basic and diluted earnings per common share in accordance with the provisions of ASC No. 260, Earnings per Share. Basic earnings per share excludes the dilutive effects of options, warrants and other convertible securities. Diluted earnings per share reflects the potential dilution of securities that could share in our earnings. Total options, warrants, convertible preferred stock and deferred stock units that were excluded from computing diluted net loss per common share represented approximately 9,994,000 and 8,029,000 for the three months ended September 30, 2011 and 2010, respectively, and 9,994,000 and 9,671,000 for the nine months ended September 30, 2011 and 2010, respectively, as their effect was anti-dilutive.

	Three months ended September 30,					Nine months ended September 30,
	2011			2010		2011			2010
Numerator:
Net (loss) income	$	(837	)	$	124	$	(2,380	)	$	(722	)
Denominator:
Weighted average common shares outstanding - basic		60,404			60,209		60,394			60,100
Effects of diluted common shares		-			640		-			-
Weighted average common shares outstanding - diluted		60,404			60,849		60,394			60,100

Net income (loss) per common share - basic	$	(0.01	)	$	0.00	$	(0.04	)	$	(0.01	)
Net income (loss) per common share - diluted	$	(0.01	)	$	0.00	$	(0.04	)	$	(0.01	)