EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2016

Common shares excluded from calculating basic and diluted net loss per common share

Shares used in calculating basic and diluted net loss per common share exclude these potential common shares as of September 30, 2016 and December 31, 2015:

	September 30, 2016		December 31, 2015
Warrants to purchase Common Stock		26,833,246		1,774,193
Stock options to purchase Common Stock		714,571		1,664,573
Common stock issuable upon the assumed conversion of payments due under our promissory note from April 2015 (1)		---		1,934,718
Total		27,547,817		5,373,484

(1)

As part of the April 2015 Note, at our option, subject to certain volume, price and other conditions, the monthly installments of principle and interest due under the April 2015 Note may be paid in whole, or in part, in cash or in Common Stock. If the monthly installments are paid in Common Stock, such shares being issued will be based on a price that is 80% of the average of the three lowest volume weighted average prices of the shares of Common Stock during the preceding twenty trading days. The percentage declines to 70% if the average of the three lowest volume weighted average prices of the shares of Common Stock during the preceding twenty trading days is less than $0.05 per share. On August 11, 2016, the Company issued the final installment payment due under the April 2015 Note.