Note 4 - Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Text Block]

NOTE 4                  EARNINGS/(LOSS) PER SHARE

Basic earnings/(loss) per share were calculated using the weighted average number of shares outstanding of 86,522,332 and 86,345,605 for the years ended December 31, 2012 and December 31, 2011, respectively.

Antidilutive shares aggregating 82,069,096 and 97,669,227 have been omitted from the calculation of dilutive earnings/(loss) per share for the years ended December 31, 2012 and December 31, 2011 respectively as the shares were antidilutive. Provided below is the reconciliation between numerators and denominators of the basic and diluted earnings/(loss) per shares:  There were no differences between basic and diluted earnings/(loss) per share.  The table below provides a reconciliation of anti-dilutive securities outstanding as of December 31, 2012 and December 31, 2011, respectively.

Anti-Dilutive Security	December 31, 2012		December 31, 2011
Preferred stock		2,750,149		2,750,149
Employee stock options		10,452,500		11,158,000
Warrants		43,212,873		58,595,758
Convertible notes		24,620,000		24,620,000
Shares issuable for accrued interest		1,033,574		545,320
Total		82,069,096		97,669,227

The employee stock options are exercisable at prices ranging from $0.045 to $0.69 per share.  The exercise price on the stock warrants range from $0.25 to $0.60 per share.  Shares issuable upon conversion of Convertible Debentures have conversion prices ranging from $0.25 to $0.50 per share.

The Company’s convertible debt and convertible preferred stock have an anti-dilutive effect on net income/(loss) per share and were not included in the computation of diluted earnings/(loss) per share.

For the year ended
	December 31, 2012								December 31, 2011
	Income (loss) Numerator			Shares Denominator		Per-Share Amount			Income (loss) Numerator			Shares Denominator		Per-Share Amount
Basic EPS	$	(8,062,487	)		86,522,332	$	(0.09	)	$	(3,728,830	)		86,345,605	$	(0.04	)
Effect of Dilutive Securities
None.		-0-			-0-		-0-			-0-			-0-		-0-
Diluted EPS	$	(8,062,487	)		86,522,332	$	(0.09	)	$	(3,728,830	)		86,345,605	$	(0.04	)