NET INCOME (LOSS) PER COMMON SHARE

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Note 3 - NET INCOME (LOSS) PER COMMON SHARE

 Basic income (loss) per common share is calculated by dividing net income (loss) available to common shareholders for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income (loss) available to common shareholders for the period by the weighted-average number of common shares outstanding during the period, adjusted to include, if dilutive, potential dilutive shares consisting of convertible preferred stock, convertible notes payable, stock options and warrants, calculated using the treasury stock and if-converted methods.  For diluted loss per share calculation purposes, the net loss available to common shareholders is adjusted to add back any preferred stock dividends and any interest on convertible debt reflected in the condensed consolidated statement of operations for the respective periods.

 The table below presents the computation of basic and diluted earnings (loss) per share:

(Amounts in thousands except share and per share amounts)	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Numerator for basic earnings (loss) per share:
Net income (loss)	$	339		$	(2,726	)	$	(8,055	)	$	(10,265	)
Preferred dividends		(13	)		(13	)		(38	)		(38	)
Net income (loss) available to common shareholders		326			(2,739	)	$	(8,093	)	$	(10,303	)
Numerator for diluted earnings (loss) per share:
Net income (loss) available to common shareholders	$	326		$	(2,739	)	$	(8,093	)	$	(10,303	)
Preferred dividends		13			-			-			-
Interest expense on convertible debt	$	1		$	-		$	-		$	-
Net income (loss) for diluted earnings (loss) per share	$	340		$	(2,739	)	$	(8,093	)	$	(10,303	)
Denominator for basic earnings (loss) per share – weighted-average shares outstanding		83,750,636			70,308,374			79,751,523			68,991,196
Effect of dilutive securities		9,601,556			-			-			-
Denominator for diluted earnings (loss) per share – weighted-average shares outstanding		93,352,192			70,308,374			79,751,523			68,991,196
Basic income (loss) per share:
Net income (loss) per share	$	0.00		$	(0.04	)	$	(0.10	)	$	(0.15	)
referred dividends		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Net income (loss) per share available to common shareholders	$	0.00		$	(0.04	)	$	(0.10	)	$	(0.15	)
Diluted income (loss) per share:
Net income (loss) per share	$	0.00		$	(0.04	)	$	(0.10	)	$	(0.15	)

The Company has excluded the following weighted-average securities from the calculation of diluted loss per share, as their effect would have been antidilutive:

Dilutive securities	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Restricted stock grants		-		280,000		-		346,642
Convertible notes payable		-		68,088		-		58,217
Convertible preferred stock		45,393		46,972		46,179		48,039
Stock options		103,315		1,137,780		102,095		1,145,604
Warrants		-		9,387,233		135,505		13,299,925
Total dilutive securities		148,708		10,920,073		283,779		14,898,427