5. Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2012

Earnings (Loss) Per Share

5. Net Income (Loss) Per Share

Basic earnings per share (EPS) were computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted EPS differs from basic EPS due to the assumed conversion of potentially dilutive options that were outstanding during the period. Dilutive securities, which consist of stock options and warrants, were excluded from the computation of the weighted average number of common shares outstanding for purposes of calculating diluted income (loss) per common share because their effect was anti-dilutive. There were no dilutive securities which were required to be included in the computation of weighted average number of shares outstanding at June 30, 2012. The following is a reconciliation of the numerators and the denominators of the basic and diluted per share computations for net income.

	Three Months Ended June 30,					Six Months Ended June 30
	2012		2011			2012		2011
Numerator:
Numerator for basic and diluted earnings per share, net income (loss) available to common shareholders	$	104,306	$	(238,481	)	$	173,378	$	(382,498	)
Denominator:
Denominator for basic earnings per share, weighted average shares outstanding		137,725,833		136,851,933			137,725,833		136,569,700
Effect of dilutive securities		-		-			-		-
Denominator for diluted earnings per share, adjusted weighted   average shares and assumed conversion		137,725,833		136,851,933			137,725,833		136,569,700
Basic earnings (loss) per common share	$	0.00	$	(0.00	)	$	0.00	$	(0.00	)
Diluted earnings (loss) per common share and common share equivalent	$	0.00	$	(0.00	)	$	0.00	$	(0.00	)