Net Loss per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Net Loss per Share

6. Net loss per share

Basic earnings per share are calculated by dividing income available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share are computed using the weighted average number of common and dilutive common share equivalents outstanding during the period. Dilutive common share equivalents consist of shares issuable upon conversion of preferred shares, exercise of stock options and warrants (calculated using the reverse treasury stock method). As of September 30, 2013 there were warrants and options outstanding to purchase 36.1 million shares, which exercise price averaged $0.67. The dilutive common shares equivalents, including convertible notes, preferred stock, options and warrants, of 412.6 million shares were not included in the computation of diluted earnings per share, because the inclusion would be anti-dilutive.

If all dilutive instruments were exercised using the reverse treasury stock method, then the total number of shares outstanding would be 506.8 million shares.