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Note 2 -basis of Presentation and Summary of Significant Accounting Policies: Basic and Diluted Earnings Per Share (Policies)

9 Months Ended

Sep. 30, 2013

Policies

Basic and Diluted Earnings Per Share

Basic and diluted earnings per share

Pursuant to ASC 260-10-45, basic income (loss) per common share is computed by dividing income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted income (loss) per share reflects the potential dilution that could occur if securities were exercised or converted into common stock or other contracts to issue common stock resulting in the issuance of common stock that would then share in our income subject to anti-dilution limitations. Potentially dilutive common shares consist of common stock issuable for stock warrants, and shares issuable upon conversion of Series B convertible preferred stock. In period where the Company has a net loss, all potentially dilutive securities are excluded from the computation of diluted shares outstanding as they would have had an anti-dilutive impact.. The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended September 30,		Nine Months Ended September 30,
Numerator:	2013	2012	2013	2012
Net (loss) income applicable to China Logistics Group, Inc. shareholders	$ (135,432)	$ (110,290)	$ (441,591)	$ 229,291
Denominator:
Denominator for basic earnings per share:
Weighted average shares outstanding	101,658,431	41,508,203	73,479,756	41,508,203
Series B convertible preferred stock	0	0	0	4,500,000
Denominator for diluted earnings per share:
Diluted weighted average shares outstanding	101,658,431	41,508,203	73,479,756	46,008,203
(Loss) earnings per common share - basic	$ (0.00)	$ (0.00)	$ (0.01)	$ 0.01
(Loss) earnings per common share - diluted	$ (0.00)	$ (0.00)	$ (0.01)	$ 0.00

The Company's aggregate common stock equivalents at September 30, 2013 and 2012 included the following:

- Definition

Disclosure of accounting policy for computing basic and diluted earnings or loss per share for each class of common stock and participating security. Addresses all significant policy factors, including any antidilutive items that have been excluded from the computation and takes into account stock dividends, splits and reverse splits that occur after the balance sheet date of the latest reporting period but before the issuance of the financial statements.

+ References+ Details

September 30,

2013

September 30,

2012

Series B convertible preferred stock