7. Earnings Per Share

Basic net loss per share, or basic earnings/(loss) per share ("EPS"), is computed by dividing net loss to common shareholders by the weighted average number of common shares outstanding for the period. For the first six months of 2011, the Company paid no dividends on its Series A preferred stock and had $0.4 million accretion of the discount on the preferred stock. At June 30, 2011, the Company had $3.5 million of unpaid cumulative dividends on the Series A preferred stock. For the first six months of 2010, the Company accrued or paid dividends of approximately $1.3 million on Series A preferred stock, which combined with the $0.3 million accretion of the discount on the preferred stock, increased the net loss to common shareholders by $1.6 million. At June 30, 2011, the Company had $0.4 million of unpaid cumulative dividends on the SunTrust preferred stock.

Diluted EPS reflects the potential dilution that could occur if the Company's potential common stock, which consists of dilutive stock options and a common stock warrant, were issued. As required for entities with complex capital structures, a dual presentation of basic and diluted EPS is included on the face of the income statement, and a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation is provided in this note.


	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands, except per share data)	2011			2010			2011			2010
Net loss from continuing operations	$	(46,985	)	$	(24,627	)	$	(86,999	)	$	(28,183	)
Preferred stock dividends		(1,087	)		(822	)		(2,104	)		(1,641	)

Net loss from continuing operations attributable to common shareholders		(48,072	)		(25,449	)		(89,103	)		(29,824	)
Net loss from discontinued operations attributable to common shareholders		(1,989	)		(298	)		(5,682	)		(319	)

Net loss available to common shareholders	$	(50,061	)	$	(25,747	)	$	(94,785	)	$	(30,143	)

Weighted average shares of common stock outstanding		11,426,501			11,424,435			11,425,585			11,424,298

Net loss per common share from continuing operations - basic and diluted	$	(4.21	)	$	(2.23	)	$	(7.80	)	$	(2.61	)
Net loss per common share from discontinued operations - basic and diluted		(0.17	)		(0.03	)		(0.50	)		(0.03	)
Net loss available to common shareholders - basic and diluted		(4.38	)		(2.26	)		(8.30	)		(2.64	)

Due to a net loss for the three- and six-month periods ended June 30, 2011 and 2010, all stock options and the common stock warrant were considered antidilutive and thus are not included in this calculation. For the three- and six-month periods ended June 30, 2011, there were 2,741,868 and 2,741,952 antidilutive shares, respectively. Additionally, for the three- and six-month periods ended June 30, 2010, there were 2,741,868 and 2,741,952 antidilutive shares, respectively. Of the antidilutive shares, the number of shares relating to stock options were 534,725 at June 30, 2011 and June 30, 2010, respectively.

Net loss available for common shareholders was decreased in the three- and six-month period ending June 30, 2011 by $1.1 million and $2.1 million, respectively, for preferred stock dividends. Net loss available for common shareholders was decreased in the three- and six-month period ending June 30, 2010 by $0.8 million and $1.6 million, for preferred stock dividends. Accretion on the preferred stock discount associated with the preferred stock of $190,500 and $377,800 was reflected for the three- and six-months ended June 30, 2011, respectively, and $178,100 and $353,200 for the three- and six-months ended June 30, 2010, respectively.