INCOME (LOSS) PER COMMON SHARE

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

INCOME (LOSS) PER COMMON SHARE

5. INCOME (LOSS) PER COMMON SHARE

In accordance with FASB Accounting Standards Codification No. 260 (“FASB ASC 260”), “Earnings per Share”, basic net profit (loss) per share is computed by dividing the net profit (loss) available to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net profit (loss) per share is computed by dividing net profit (loss) available to common stockholders by the weighted average number of common and common equivalent shares outstanding during the period. Common equivalent shares outstanding as of September 30, 2012, which consist of options and convertible notes, have been excluded from the diluted net loss per common share calculations because they were anti-dilutive at September 30, 2012. Accordingly, diluted net loss per share is the same as basic net loss per share for the three and nine months ended September 30, 2012.

At September 30, 2013 and 2012, respectively, 382,675 and 237,786 potential common stock shares are issuable upon the exercise of vested options and conversion of debt to common stock. For the three and nine months ended September 30, 2013, 977,846 and 977,846 shares, respectively, related to options were excluded from the computation of diluted earnings per share as they were anti-dilutive due to their exercise price being in excess of the average close price for the period ended or they were not yet vested. For the three and nine months ended September 30, 2012, 625,349 and 672,807 shares, respectively, related to options were excluded from the computation of diluted earnings per share as they were antidilutive due to their exercise price being in excess of the average close price for the three month period ended or they were not yet vested.

The following table sets forth the computation of basic and diluted earnings per share:

	Three months ended September 30, 2013 (restated)		Three months ended September 30, 2012		Nine months ended September 30, 2013 (restated)		Nine months ended September 30, 2012
Consolidated Net Income (loss)	$	737,286	$	(462,999)	$	712,427	$	(2,249,646)
Basic weighted average number of     shares outstanding		20,564,163		10,819,681		16,796,310		9,940,168
Dilutive options		10,621		-		9,662		-
Diluted weighted average number of     common and common equivalent     shares		20,574,784		10,819,681		16,805,972		9,940,168
Basic income (loss) per common share	$	0.04	$	(0.04)	$	0.04	$	(0.23)
Diluted income (loss) per common share	$	0.04	$	(0.04)	$	0.04	$	(0.23)