Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 5. Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding during the periods presented. Diluted earnings per share is based on the weighted average number of common shares outstanding, as well as dilutive potential common shares which, in the Company’s case, comprise shares issuable under convertible notes payable and stock options. The treasury stock method is used to calculate dilutive shares, which reduces the gross number of dilutive shares by the number of shares purchasable from the proceeds of the options and warrants assumed to be exercised. In a loss period, the calculation for basic and diluted loss per share is considered to be the same, as the impact of potential common shares is anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share for the nine months ended September 30, 2012:

	Income (Numerator)		Shares (Denominator)		Per Share
Income available to common stockholders	$	224,404		25,961,883	$	.01
Effect of dilutive securities - common stock options		0		1,539,118
Diluted earnings per share - income available to common stockholders with assumed conversions	$	224,404		27,501,001	$	.01

As of September 30, 2012 and 2011, convertible debt and options to purchase 22,455,891 and 25,378,864 shares of common stock, respectively, that could potentially dilute basic earnings per share in the future were excluded from the calculation of diluted net income (loss) per share because their inclusion would have been anti-dilutive due to the Company’s losses in the respective periods.