14. LOSS PER SHARE

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

14. LOSS PER SHARE

Basic earnings per share is based on the weighted effect of all common shares issued and outstanding, and is calculated by dividing net income by the weighted average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares outstanding.

At December 31, 2014 and 2013, the Company had outstanding warrants and notes payable convertible into shares of common stock, which were not used in the computation of income (loss) per share because their effect would be anti-dilutive either due to the net loss or due to the exercise price of the warrants and options or conversion rate of the convertible notes relative to the current stock price.

The following data shows the amounts used in computing loss per share:

	For the Year Ended
	December 31,
	2014			2013
Net (loss) (numerator)	$	(1,864,814	)	$	(1,963,000	)
Shares (denominator)
Basic		28,575,371			28,575,371
Per share amount
Basic	$	(0.07	)	$	(0.07	)