EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 7 - EARNINGS PER SHARE

As of September 30, 2013, Kingold had a number of warrants issued and outstanding in connection with the issuance of its common stock in public offerings. Of these warrants: 125,000 warrants were issued in 2008, with an exercise price of $1.196; 969,358 warrants were issued in 2009, with an exercise price of $0.996; 150,000 warrants were issued in 2011, with an exercise price of $3.25; 144,000 warrants were issued in 2011, with an exercise price of $3.99; and 300,000 warrants were issued in January 2013, with exercise price of $1.80. As of September 30, 2013, the warrants issued in 2008 and 2009 were considered dilutive and were included in the weighted average shares-diluted calculation using the treasury stock method. The warrants issued in 2011 and 2013 were anti-dilutive because the exercise prices were higher than the average market price in the nine months ended September 30, 2013. Accordingly, such warrants are not included in weighted average shares calculation.

As of September 30, 2013, Kingold also had 3,040,000 options outstanding to purchase the same number of shares of the Company’s common stock. Of those options, 120,000 options were granted in 2011, with an exercise price of $2.27; 1,500,000 options were granted in 2011, with an exercise price of $2.59; 1,300,000 options were granted in 2012, with an exercise price of $1.22; and 120,000 options were granted in 2012, with an exercise price of $1.49. As of September 30, 2013, 1,300,000 options granted in 2012 were considered dilutive and were included in the weighted average shares-diluted calculation using the treasury stock method. The options granted in 2011 and 120,000 options granted in 2012 were anti-dilutive because the exercise prices were higher than the average market price in the nine months ended September 30, 2013. Accordingly, they are not included in weighted average shares calculation.

The following table presents a reconciliation of basic and diluted net income per share:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2013		2012		2013		2012
Net income	$	10,994,695	$	8,366,617	$	20,353,591	$	25,261,540
Weighted average number of common shares outstanding - Basic		64,334,400		53,578,218		63,073,008		53,286,072
Effect of dilutive securities:
Unexercised warrants and options		152,538		668,345		237,026		914,480
Weighted average number of common shares outstanding - Diluted		64,486,938		54,246,563		63,310,034		54,200,552
Earnings per share-Basic	$	0.17	$	0.16	$	0.32	$	0.47
Earnings per share-Diluted	$	0.17	$	0.15	$	0.32	$	0.47