BASIC AND DILUTED NET LOSS PER COMMON SHARE

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

NOTE 3 - BASIC AND DILUTED NET LOSS PER COMMON SHARE

Basic loss per common share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding. Diluted loss per share is computed by dividing the net loss by the sum of the weighted-average number of shares of common stock outstanding plus the dilutive effect of shares issuable through the exercise of common stock equivalents.

We have excluded 29,763,000 and 27,546,000 common stock equivalents (preferred stock, warrants and stock options) from the calculation of diluted loss per share for the nine months ended September 30, 2013 and September 30, 2012, respectively, which, if included, would have an antidilutive effect.