Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 4. 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, stock options and stock warrants. 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 earnings 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 three months ended:

	March 31, 2013
	Income (Numerator)		Shares (Denominator)		Per Share
Income available to common stockholders	$	20,764		25,961,883	$	.00
Effect of dilutive securities - common stock options and convertible notes payable		14,342		21,114,112
Diluted earnings per share - income available to common stockholders with assumed conversions	$	35,106		47,075,995	$	.00

	March 31, 2012
	Income (Numerator)		Shares (Denominator)		Per Share
Income available to common stockholders	$	335,002		25,961,883	$	.01
Effect of dilutive securities - common stock options		0		204,816
Diluted earnings per share - income available to common stockholders with assumed conversions	$	335,002		26,166,699	$	.01

For the three months ended March 31, 2013 and 2012, convertible debt and options to purchase 3,146,500 and 26,445,013 shares of common stock, respectively, that could potentially dilute basic earnings per share were excluded from the calculation of diluted earnings per share because the exercise prices were greater than the average market price of the common shares or their inclusion would have been anti-dilutive.