Note 4 - Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

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 90,417,480 and 87,515,641 for the nine month periods ended September 30, 2014 and September 30, 2013, respectively.

Antidilutive shares of 81,482,435 and 79,502,620 have been omitted from the calculation of dilutive earnings/(loss) per share for the nine month periods ended September 30, 2014 and September 30, 2013, 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 nine month periods ended September 30, 2014 and September 30, 2013. The table below provides a reconciliation of anti-dilutive securities outstanding as of September 30, 2014 and September 30, 2013, respectively.

Anti-Dilutive Security	September 30, 2014		September 30, 2013
Preferred stock		2,750,149		2,750,149
Employee stock options		4,681,500		6,175,000
Warrants		48,463,517		44,728,873
Convertible notes		24,620,000		24,620,000
Shares issuable for accrued interest		967,269		1,228,598
Total		81,482,435		79,502,620

The employee stock options are exercisable at prices ranging from $0.045 to $0.64 per share. The exercise prices on the 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 nine months ended
	September 30, 2014						September 30, 2013
	Income/(loss)		Shares		Per-share		Income/(loss)			Shares		Per-share
	numerator		denominator		amount		numerator			denominator		amount
Basic EPS	$	250,642		90,417,480	$	0.00	$	(4,621,397	)		87,515,641	$	(0.05	)
Effect of dilutive securities - none		-0-		-0-		-0-		-0-			-0-		-0-
Diluted EPS	$	250,642		90,417,480	$	0.00	$	(4,621,397	)		87,515,641	$	(0.05	)

For the three months ended
	September 30, 2014						September 30, 2013
	Income/(loss)		Shares		Per-share		Income/(loss)		Shares		Per-share
	numerator		denominator		amount		numerator		denominator		amount
Basic EPS	$	1,229,741		91,032,920	$	0.01	$	1,680,481		87,867,268	$	0.02
Effect of dilutive securities - none		-0-		-0-		-0-		-0-		-0-		-0-
Diluted EPS	$	1,229,741		91,032,920	$	0.01	$	1,680,481		87,867,268	$	0.02