| EARNINGS (LOSS) PER SHARE |
NOTE 15 – EARNINGS (LOSS) PER SHARE
Basic net loss per common share is computed by dividing net loss
applicable to common shareholders by the weighted average number of
common shares outstanding during the periods presented. Diluted net
loss per common share is determined using the weighted average
number of common shares outstanding during the periods presented,
adjusted for the dilutive effect of common stock equivalents,
consisting of shares that might be issued upon exercise of options,
warrants and conversion of convertible debt. In periods where
losses are reported, the weighted average number of common shares
outstanding excludes common stock equivalents, because their
inclusion would be anti-dilutive.
The following table provides a reconciliation of the numerators and
denominators used in calculating basic and diluted earnings per
share for the years ended December 31:
| |
|
2011 |
|
|
2010 |
|
| Basic earnings (loss) per share
calculation: |
|
|
|
|
|
|
|
|
| Net
income (loss) to common shareholders |
|
$ |
(14,724,327 |
) |
|
$ |
(3,890,271 |
) |
| Weighted average of
common shares outstanding |
|
|
38,414,561 |
|
|
|
23,499,823 |
|
| |
|
|
|
|
|
|
|
|
| Basic net earnings
(loss) per share |
|
$ |
(0.38 |
) |
|
$ |
(0.17 |
) |
| |
|
|
|
|
|
|
|
|
| Diluted earnings (loss) per share
calculation: |
|
|
|
|
|
|
|
|
| Net income (loss)
per common shareholders |
|
$ |
(14,724,327 |
) |
|
$ |
(3,890,271 |
) |
| Basic weighted
average common shares outstanding |
|
|
38,414,561 |
|
|
|
23,499,823 |
|
| Stock
purchase warrants |
|
|
(1 |
) |
|
|
(2 |
) |
| Diluted weighted
average common shares outstanding |
|
|
38,414,561 |
|
|
|
23,499,823 |
|
| |
|
|
|
|
|
|
|
|
| Diluted net income
(loss) per share |
|
$ |
(0.38 |
) |
|
$ |
(0.17 |
) |
|
(1) |
As of December 31, 2011, we had (i)
13,719,335 shares of common stock issuable upon the exercise of
outstanding stock options, (ii) 12,076,878 shares of common stock
issuable upon the exercise of outstanding warrants, (iii) reserved
an aggregate of 5,149,378 shares of common stock issuable under
outstanding convertible debt agreements and (iv) 1,919,000 shares
reserved under private options. These 32,864,591 shares, which
would be reduced by applying the treasury stock method, were
excluded from diluted weighted average outstanding shares amount
for computing the net loss per common share, because the net effect
would be antidilutive for the period presented. |
|
(2) |
As of December 31, 2010, we had (i)
2,800,000 shares of common stock issuable upon the exercise of
outstanding stock options and (ii) 3,044,000 shares of common stock
issuable upon the exercise of outstanding warrants. These 5,844,000
shares, which would be reduced by applying the treasury stock
method, were excluded from diluted weighted average outstanding
shares amount for computing the net loss per common share, because
the net effect would be antidilutive for the period presented. |
|