Note 4 - Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

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 87,515,641 and 86,496,550 for the nine month periods ended September 30, 2013 and September 30, 2012, respectively.

Basic earnings (loss) per share were calculated using the weighted average number of shares outstanding of 87,867,268 and 86,526,332 for the three month periods ended September 30, 2013 and September 30, 2012, respectively.

Antidilutive shares aggregating 79,502,620 and 82,521,509 have been omitted from the calculation of dilutive earnings (loss) per share for the nine month periods ended September 30, 2013 and September 30, 2012, respectively, as the shares were antidilutive. Provided below is the reconciliation between numerators and denominators of the basic and diluted earnings per shares: There were no differences between basic and diluted earnings per share for the nine month periods ended September 30. The table below provides a reconciliation of anti-dilutive securities outstanding as of September 30, 2013 and September 30, 2012, respectively. 

Anti-dilutive security	September 30, 2013		September 30, 2012
Preferred stock		2,750,149		2,750,149
Employee stock options		6,175,000		10,502,500
Warrants		44,728,873		44,089,580
Convertible notes		24,620,000		24,620,000
Shares issuable for accrued interest		1,228,598		559,280
Total		79,502,620		82,521,509

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 per share.

For the nine months ended
	September 30, 2013								September 30, 2012
	Income (loss) numerator			Shares denominator		Per-share amount			Income (loss) numerator			Shares denominator		Per-share amount
Basic EPS	$	(4,621,397	)		87,515,641	$	(0.05	)	$	(6,417,743	)		86,496,550	$	(0.07	)
Effect of dilutive securities
None		-0-			-0-		-0-			-0-			-0-		-0-
Diluted EPS	$	(4,621,397	)		87,515,641	$	(0.05	)	$	(6,417,743	)		86,496,550	$	(0.07	)

For the three months ended
	September 30, 2013						September 30, 2012
	Income (loss) numerator		Shares denominator		Per-share amount		Income (loss) numerator			Shares denominator		Per-share amount
Basic EPS	$	1,680,481		87,867,268	$	0.02	$	(4,465,210	)		86,526,332	$	(0.05	)
Effect of dilutive securities
None		-0-		-0-		-0-		-0-			-0-		-0-
Diluted EPS	$	1,680,481		87,867,268	$	0.02	$	(4,465,210	)		86,526,332	$	(0.05	)