Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2014

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 June 30, 2014, there were options and warrants to purchase 10,330,001 and 25,572,059 shares of common stock, respectively, outstanding which could potentially dilute future net income (loss) per share. At June 30, 2014 the Company also has outstanding convertible debt which is initially convertible into 16,894,428 shares of common stock, that 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. At June 30, 2013, there were options and warrants to purchase 9,890,001 and 6,119,864 shares of common stock, respectively, outstanding which could potentially dilute future net income (loss) per share. At June 30, 2013 the Company also had outstanding convertible debt which was initially convertible into 4,818,605 shares of common stock, 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 June 30,						For the Six Months Ended June 30,
	2014			2013			2014			2013
Net loss	$	(2,130,595	)	$	(779,770	)	$	(2,648,809	)	$	(1,187,236	)
Weighted average shares outstanding - basic		42,773,093			42,198,093			42,763,977			42,198,093
Dilutive effect of stock options and warrants		—			—			—			—
Weighted average shares outstanding - diluted		42,773,093			42,198,093			42,763,077			42,198,093
Net loss per share - basic and diluted	$	(0.05	)	$	(0.02	)	$	(0.06	)	$	(0.03	)