EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2011

Earnings Loss Per Share

EARNINGS (LOSS) PER SHARE

NOTE 6. EARNINGS (LOSS) PER SHARE

Basic earnings per share includes no dilution and is computed by dividing income  available to common shareholders by the weighted average number of common shares outstanding for the periods presented. The calculation of basic earnings per share for the nine months ended September 30, 2011 includes the weighted average of common shares outstanding.  Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity, such as convertible preferred stock, stock options, warrants or convertible securities.  The calculation of diluted earnings per share for the nine months ended September 30, 2011 does not include options to purchase 1,910,858 shares and warrants to purchase 1,228,714 shares due to their anti-dilutive effect.

The following is a reconciliation of the numerator and denominator for basic and diluted earnings per share for the nine months ended September 30, 2011 and 2010:

2011			2010
Basic Earnings per Share
Numerator:
Income  available to common shareholders	$	3,635,061	$	761,147
Denominator:
Weighted-average shares outstanding		8,722,642		8,276,184
Basic earnings per share	$	0.42	$	0.09
Diluted Earnings per Share
Numerator:
Income	$	3,635,061	$	761,147
Denominator:
Weighted-average shares outstanding		8,722,642		8,276,184
Effect of dilutive securities
Stock options and warrants		1,329,073		563,998
Preferred stock		4,452,167		4,700,273
Diluted weighted-average shares outstanding		14,503,882		13,540,455
Diluted earnings per share	$	0.25	$	0.06