EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2014

EARNINGS PER SHARE [Text Block]

16.   EARNINGS PER SHARE

Basic earnings per share result by dividing the Company’s net income (or net loss) by the weighted average number of shares outstanding for the contemplated period. Diluted earnings per share are calculated applying the treasury stock method. When there is a net income, dilutive effects of all stock-based compensation awards or participating financial instruments are considered. When the Company posts a loss, basic loss per share equals diluted loss per share.

The following table depicts how the denominator for the calculation of basic and diluted earnings per share was determined under the treasury stock method:

	Three months ended		Six months ended
	Jun 30, 2014	Jun 30, 2013	Jun 30, 2014	Jun 30, 2013
Company posted	Net loss	Net loss	Net loss	Net loss
Basic weighted average shares outstanding	172,592,292	172,592,292	172,592,292	172,592,292
Dilutive effect of common stock equivalents:
- stock options and non-vested stock under       employee compensation plans	-	-	-	-
Diluted weighted average shares outstanding	172,592,292	172,592,292	172,592,292	172,592,292

The following table shows the total number of stock equivalents that was excluded from the computation of diluted earnings per share for the respective period because the effect would have been anti-dilutive:

	Three months ended		Six months ended
Stock equivalent	Jun 30, 2014	Jun 30, 2013	Jun 30, 2014	Jun 30, 2013
Options	12,100,000	14,100,000	12,100,000	14,100,000
Warrants	-	44,450,000	-	44,450,000
Total	12,100,000	58,550,000	12,100,000	58,550,000