Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2012

Net Income (Loss) Per Share [Abstract]

Net Income (Loss) Per Share

12.   Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of the common shares issuable upon the exercise of stock options and warrants. Potentially dilutive common shares are excluded from the calculation if their effect is antidilutive. At December 31, 2012 and 2011 there were options and warrants to purchase 13,186,945 and 6,452,084 shares of Common Stock, respectively, outstanding which could potentially dilute future net income (loss) per share. At December 31, 2012 the Company also has outstanding convertible debt which is initially convertible into approximately 4,320,000 shares of Common Stock, which could potentially dilute future net income (loss) per share. The number of shares the convertible debt could be converted into could potentially increase under certain circumstances related to the market price of the Company’s Common Stock at the time of conversion.

Basic and diluted net loss per share was calculated for the years ending December 31, 2011 and 2010 as follows:

	2012			2011
Net loss	$	(1,766,025	)	$	(1,909,575	)
Weighted average shares outstanding - basic		41,378,216			35,411,704
Dilutive effect of stock options and warrants		-			-
Weighted average shares outstanding - diluted		41,378,216			35,411,704
Net loss per share - basic and diluted	$	(0.04	)	$	(0.05	)