Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 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 September 30, 2013, there were options and warrants to purchase 10,320,001 and 6,119,864 shares of common stock, respectively, outstanding which could potentially dilute future net income (loss) per share. At September 30, 2013 the Company also had outstanding convertible debt which is initially convertible into 4,818,605 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 September 30, 2012, there were options and warrants to purchase 9,287,501 and 1,160,607 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 as follows:

 

	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
	2013				2012				2013				2012
Net loss	$	(465,382	)		$	(525,857	)		$	(1,652,618	)		$	(1,456,624	)
Weighted average shares outstanding - basic		42,198,093				41,985,950				42,198,093				41,137,769
Dilutive effect of stock options and warrants		-								-
Weighted average shares outstanding - diluted		42,198,093				41,985,950				42,198,093				41,137,769
Net loss per share - basic and diluted	$	(0.01	)	$	(0.01	)		$	(0.04	)		$	(0.03	)