Note 4 - Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Text Block]

NOTE 4.                EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share were calculated using the weighted average number of shares outstanding of 86,843,659 and 86,481,495 for the three month periods ended March 31, 2013 and March 31, 2012, respectively.

Antidilutive shares aggregating 80,288,784 and 87,167,175 have been omitted from the calculation of dilutive earnings (loss) per share for the three month periods ended March 31, 2013 and March 31, 2012, respectively, as the shares were antidilutive. Provided below is the reconciliation between numerators and denominators of the basic and diluted earnings per shares:  There were no differences between basic and diluted earnings per share for the three month periods ended March 31.  The table below provides a reconciliation of anti-dilutive securities outstanding as of March 31, 2013 and March 31, 2012, respectively.

Anti-dilutive security	March 31, 2013		March 31, 2012
Preferred stock		2,750,149		2,750,149
Employee stock options		6,650,000		11,093,000
Warrants		45,528,873		48,274,288
Convertible notes		24,620,000		24,620,000
Shares issuable for accrued interest		739,762		429,738
Total		80,288,784		87,167,175

The employee stock options are exercisable at prices ranging from $0.045 to $0.69 per share.  The exercise price on the stock warrants range from $0.25 to $0.60 per share.  Shares issuable upon conversion of Convertible Debentures have conversion prices ranging from $0.25 to $0.50 per share.

The Company’s convertible debt and convertible preferred stock have an anti-dilutive effect on net income (loss) per share and were not included in the computation of diluted earnings per share.

For the three months ended
	March 31, 2013								March 31, 2012
	Income (loss) numerator			Shares denominator		Per-share amount			Income (loss) numerator			Shares denominator		Per-share amount
Basic EPS	$	(4,592,267	)		86,843,659	$	(0.05	)	$	(3,452,400	)		86,481,495	$	(0.04	)
Effect of dilutive securities - None		-0-			-0-		-0-			-0-			-0-		-0-
Diluted EPS	$	(4,592,267	)		86,843,659	$	(0.05	)	$	(3,452,400	)		86,481,495	$	(0.04	)