Earnings Per Share

9 Months Ended

Sep. 30, 2011

4. Earnings Per Share

Basic earnings per common share are computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock options, unvested restricted stock, and warrants) were exercised or converted into common stock or resulted in the issuance of common stock (net of any assumed repurchases) that then shared in the earnings of the Company, if any. This is computed by dividing net earnings by the combination of dilutive common share equivalents, which is comprised of shares issuable under outstanding warrants and the Company’s share-based compensation plans, and the weighted average number of common shares outstanding during the reporting period. Since the Company is in a net loss position, all common stock equivalents would be considered to be anti-dilutive and are, therefore, not included in the determination of diluted earnings per share. Accordingly, basic and diluted loss per share are the same. The financial statements for all prior periods have been retroactively adjusted to reflect the May 19, 2011 one-for-ten reverse stock split of the Company’s common stock.

The following table provides the components of the calculations of basic and diluted earnings per share:

		Three Months Ended						Nine Months Ended
		September 30,			September 30,			September 30,			September 30,
		2011			2010			2011			2010
Numerator:
Net loss	$	(6,290,546	)	$	(9,291,565	)	$	(20,286,414	)	$	(38,366,270	)
Denominator:
Weighted average number of common shares		22,676,114			13,150,113			17,441,767			13,103,837

The potential dilutive common shares are summarized as follows:

	At September 30,
	2011	2010
Stock options outstanding	1,344,665	540,369
Unvested restricted stock	408,388	548,024
Warrants ⁽¹⁾	7,128,563	57,143
Number of potential dilutive common shares	8,881,616	1,145,536

⁽¹⁾

On May 31, 2011, the Company granted 7,128,563 warrants as part of an underwritten public offering. On May 4, 2007, the Company granted 57,143 warrants (as adjusted for the reverse stock split) to the shareholders of General Hydrogen as part of the acquisition of that company. Those warrants expired on May 4, 2011.