Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2013

Net Income (Loss) Per Share [Abstract]

Net Income (Loss) Per Share

8.           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 March 31, 2013, there were options and warrants to purchase 9,860,001 and 4,817,538 shares of common stock, respectively, outstanding which could potentially dilute future net income (loss) per share. At March 31, 2013 the Company also had outstanding convertible debt which is initially convertible into 3,516,279 shares of Common Stock, which could potentially increase under certain circumstances related to the market price of the Company’s Common Stock at the time of conversion. At March 31, 2012, there were options and warrants to purchase 7,807,500 and 1,130,907 shares of common stock, respectively, outstanding which could potentially dilute future net income (loss) per share.

Basic and diluted net loss per share was calculated for the three months ending March 31, 2013 and 2012 as follows:

	2013			2012
Net loss	$	(407,466	)	$	(463,569	)
Weighted average shares outstanding - basic		42,198,093			39,843,839
Dilutive effect of stock options and warrants		-			-
Weighted average shares outstanding - diluted		42,198,093			39,843,839
Net loss per share - basic and diluted	$	(0.01	)	$	(0.01	)