Note 6 - Earnings per Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

6.             Earnings per Share

Basic earnings per share are calculated using the Company’s weighted-average outstanding common shares. Diluted earnings per share are calculated using the weighted-average outstanding common shares; the dilutive effect of applying the “if converted method” to convertible notes and investor warrants with cashless exercise provisions; and the dilutive effect of applying the treasury stock method to stock options and the 2013 warrants. In applying the if-converted method to convertible notes and investor warrants with cashless exercise provisions, the Company has adjusted net income (loss) to exclude the impact of fair value changes and interest expense associated with these instruments for the purposes of calculating diluted earnings per share. The following table reconciles net income (loss) and weighted average shares outstanding used in computing basic and diluted earnings per share;

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Net income (loss)	$	2,329		$	7,946		$	(85	)	$	137
Change in fair value of warrants		--			(3,097	)		--			--
Change in fair value of convertible note		(711	)		(3,177	)		--			--
Interest expense on convertible notes		71			62			--			--
Net income (loss) available to common stockholders, plus assumed conversions	$	1,689		$	1,734		$	(85	)	$	137
Basic weighted-average shares outstanding		135,093			63,922			130,074			52,858
Effect of dilutive securities:								--
Convertible notes		83,239			49,500			--			--
Right to shares		69,760			7,000			--			7,000
Warrants		--			17,304			--			--
Stock Options		--			38			--			102
Weighted-average shares-diluted		288,092			137,764			130,074			59,960
Net income per share - basic	$	0.01		$	0.12		$	0.00		$	0.00
Net income per share - diluted	$	0.01		$	0.01		$	0.00		$	0.00

During the three and six months ended June 30, 2013, options and warrants to purchase 47,777,683 and 64,141,716 shares of common stock, respectively ,were excluded from the calculations of diluted earnings per share as their effect would have been anti-dilutive. In addition, when applying the “if converted” method to the convertible debt, the net impact of adding back the interest expense and eliminating the fair value changes of the convertible debt would result in a reduction in net income of $1,753,000 for the six months ended June 30, 2013. Accordingly the impact of the issuance of 49,500,000 shares of common stock upon conversion of convertible debt was excluded from the calculations of diluted earnings per share for the six months ended June 30, 2013 as their effect would have been anti-dilutive.

During the three and six months ended June 30, 2014, 7,574,000 options and 8,333,333 warrants to purchase 15,907,333 shares of common stock, respectively ,were excluded from the calculations of diluted earnings per share as their effect would have been anti-dilutive. In addition, when applying the “if converted” method to the convertible debt, the net impact of adding back the interest expense and eliminating the fair value changes of the convertible debt would result in a reduction in net loss of $205,000 for the six months ended June 30, 2014. Accordingly the impact of the issuance of 49,500,000 shares of common stock upon conversion of convertible debt was excluded from the calculations of diluted earnings per share for the six months ended June 30, 2014 as their effect would have been anti-dilutive.