XML 28 R17.htm IDEA: XBRL DOCUMENT v3.5.0.2
Per Share Information
6 Months Ended
Jun. 30, 2014
Earnings Per Share [Abstract]  
Per Share Information

13. Per Share Information

 

Loss per share

 

Basic loss per share of common stock is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding.  Diluted loss per share of common stock (“Diluted EPS”) is computed by dividing the net loss by the weighted-average number of shares of common stock and dilutive common stock equivalents and convertible securities then outstanding.  At June 30, 2014 and 2013, there were 900,256,322 and 238,638,820 of potentially dilutive common stock equivalents outstanding, respectively. The potentially dilutive common stock equivalents at June 30, 2014 arise from (i) the issuance on December 7, 2011 of 45,000 Series B Preferred Shares which are convertible into 15,000,000 common shares, (ii) the issuance of the Rasel note which is convertible into 255,893,103 shares, (iii) the issuance of 10,000 Series C Preferred Shares having a stated value of $100 per share, of which 700 shares remain unconverted, which remaining unconverted shares are convertible into 25,666,667 common shares, given recent market prices, and notwithstanding a restriction against owning more than 4.99% of the Company’s stock, and (iv) the issuance of a $500,000 convertible note payable to Vulcan netted against the note receivable from Vulcan, which is convertible into 154,000,000 shares, given recent market prices, and notwithstanding a restriction against owning more than 4.99% of the Company’s stock, (iv) the issuance of a note to a third party Financier, which based on a theoretical conversion at June 30, 2014 would have converted into 112,517,241 shares of common stock, (v) the issuance of a note payable to a Third Party, of which the remaining balance at June 30, 2014 is $25,282, which at current market prices converts into 87,179,310 shares, and (vi) the issuance of a note for the Blackbridge commitment fee. The note was convertible at 90% of the lowest price for the previous 20 trading days. At June 30, 2014, the note would have converted into 250,000,000 shares (50 shares post-split, after 5,000-to-1 and 1,000-to-1 reverse splits in October 2014 and February 2015, respectively). The potentially dilutive common stock equivalents at June 30, 2013 arise from (i) the issuance on December 7, 2011 of 45,000 Series B Preferred Shares which are convertible into 15 million shares, (ii) the issuance of the Rasel note which is convertible into 238,820 shares, (iii) the issuance of 10,000 Series C Preferred Shares having a stated value of $100 per share which are convertible into 40,000,000 common shares, given recent market prices, and notwithstanding a restriction against owning more than 4.99% of the Company’s stock, and (iv) the issuance of a $500,000 convertible note payable to Vulcan, which is convertible into 183,400,000 shares, given recent market prices, and notwithstanding a restriction against owning more than 4.99% of the Company’s stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on the net loss per common share.