2. Income (Loss) Per Common Share

9 Months Ended

Sep. 30, 2012

Net income (loss) per share of common stock:

Income (Loss) Per Common Share

Basic earnings per share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period.  Diluted earnings per share is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including warrants to purchase the Company's common stock and convertible preferred stock.  Management has determined that the calculation of diluted earnings per share for the three and nine month periods ending September 30, 2012, is not applicable since any additions to outstanding shares related to common stock purchase warrants would be anti-dilutive.

As of September 30, 2012 and 2011, the potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows:

	For the Three Months Ended				For the NineMonths Ended
	September 30, 2012		September 30, 2011		September 30, 2012		September 30, 2011
Warrants		1,776,917				1,776,917
Convertible preferred stock		1,751,005		1,751,005		1,751,005		1,751,005
Total possible dilution		3,527,922		1,751,005		3,527,922		1,751,005
Basic weighted shares
outstanding		61,786,822		59,150,784		61,051,943		58,157,638
Warrants		-		541,318		-		504,948
Basic and diluted weighted shares outstanding		61,786,822		59,692,102		61,051,943		58,662,586