Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

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

		Three Months Ended
		March 31, 2013		March 31, 2012
Numerator:
	Net loss	$	(8,576,379)	$	(6,583,102)
Denominator:
	Weighted average number of common shares
	outstanding	48,566,794		23,437,600

The potential dilutive common shares are summarized as follows:

	At March 31,
	2013			2012
Stock options outstanding		1,986,255		1,948,124
Unvested restricted stock			-	280,771
Common stock warrants (1)		39,662,889		9,421,008
Number of dilutive potential common shares		41,649,144		11,649,903

⁽¹⁾ On May 31, 2011, the Company issued 7,128,563 warrants as part of an underwritten public offering. As a result of the March 28 and 29, 2012 and February 20 and 21, 2013 public offerings described in Note 5, the number of warrants increased to 18,925,389. Additionally, on February 20, 2013 the Company issued 23,637,500 warrants as part of an underwritten public offering. Of the warrants issued in February 2013, 2,900,000 were exercised as of March 31, 2013.