| Computation of Basic and Diluted Earnings Per Common Share |
The following table sets forth the computation of basic and diluted earnings per common share for the three month period ended June 30, 2013 and 2012: | | | June 30, | | June 30, | | | | | 2013 | | 2012 | | | | | | | | | | | | Net (loss) income attributed to common shareholders | | $ | (445,955) | | $ | 141,767 | | | | | | | | | | | | Denominator for basic earnings per | | | 39,794,189 | | | 29,257,426 | | | share-weighted average shares outstanding | | | | | | | | | | | | | | | | | | Effect of dilutive securities: | | | | | | | | | Warrants, restricted stock and options outstanding | | | - | | | - | | | | | | | | | | | | Denominator for diluted earnings per common share - weighted average
shares adjusted for dilutive securities | | | 39,794,189 | | | 29,257,426 | | | | | | | | | | | | (Loss) income per common share – basic | | $ | (0.01) | | $ | 0.00 | | | | | | | | | | | | (Loss) income per common share- diluted | | $ | (0.01) | | $ | 0.00 | | The following table sets forth the computation of basic and diluted earnings per common share for the six month period ended June 30, 2013 and 2012: | | | June 30, | | June 30, | | | | | 2013 | | 2012 | | | | | | | | | | | | Net loss attributed to common shareholders | | $ | (2,959,158) | | $ | (1,980,990) | | | | | | | | | | | | Denominator for basic earnings per
share-weighted average shares outstanding | | | 38,059,566 | | | 27,991,393 | | | | | | | | | | | | Effect of dilutive securities: | | | | | | | | | Warrants, restricted stock and options outstanding | | | - | | | - | | | | | | | | | | | | Denominator for diluted earnings per common share - weighted average
shares adjusted for dilutive securities | | | 38,059,566 | | | 27,991,393 | | | | | | | | | | | | Loss per common share – basic | | $ | (0.08) | | $ | (0.07) | | | | | | | | | | | | Loss per common share- diluted | | $ | (0.08) | | $ | (0.07) | | |
| Schedule Outstanding Excluded from Computation Because they would have bee Anti-dilutive |
Securities outstanding that were excluded from the computation because they would have been anti-dilutive are as follows: | | | June 30, | | June 30, | | | | | 2013 | | 2012 | | | | | | | | | | | | Warrants (including Series C Warrant issuable upon exercise of Series B
Warrant of 1,101,034) | | | 24,097,860 | | | 11,007,754 | | | Convertible debt (including warrants issuable upon conversion of 371,000
at June 30, 2013 and 2,888,800 at June 30, 2012) | | | 742,000 | | | 5,296,133 | | | Restricted stock | | | 500,000 | | | 550,000 | | | Options | | | 680,000 | | | 450,000 | | | | | | 26,019,860 | | | 17,303,887 | | |