Net Loss Per Share

9 Months Ended

Sep. 30, 2013

Net Loss Per Share [Abstract]

Net Loss Per Share

5. Net Loss Per Share

Basic and diluted net loss per common share is calculated by dividing net loss applicable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. The Company's potentially dilutive shares, which include convertible preferred stock, outstanding stock options and unvested restricted stock are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. The following table reconciles net loss to net loss applicable to common shareholders:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net loss	$	(2,029,192	)	$	(578,939	)	$	(4,491,868	)	$	(1,696,899	)
Net loss: Non-controlling interest		(61,750	)		(11,130	)		(139,796	)		(25,508	)
Beneficial conversion charge		-			-			(2,300,000	)		-
Preferred Stock Dividend		(361,668	)		-			(361,668	)		-
Net loss applicable to common stockholders	$	(2,329,110	)	$	(567,809	)	$	(7,013,740	)	$	(1,671,391	)
Weighted-average number of common shares used in net loss per share applicable to common stockholders-basic and diluted		4,835,582			1,832,766			2,863,310			1,830,593
Net loss per share applicable to common stockholders-basic and diluted	$	(0.48	)	$	(0.31	)	$	(2.45	)	$	(0.91	)

The following potentially dilutive securities were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Preferred stock (on an as converted basis)		-		860,017		-		860,017
Preferred stock warrants		-		20,549		-		20,549
Outstanding stock options		575,762		537,854		575,762		537,854
Unvested restricted stock		-		5,073		-		5,073
Common stock warrants		53,159		32,610		53,159		32,610

Reverse Stock Split

In May 2013, the Company's board of directors and stockholders approved a 1-for-2.3 reverse stock split of the Company's common stock. The reverse stock split became effective on May 29, 2013. All share and per share amounts in the financial statements have been retroactively adjusted for all periods presented to give effect to the reverse stock split, including reclassifying an amount equal to the increase in par value to additional paid-in capital.