Note 10 — Loss per Share

The following sets forth the computation of basic and fully diluted weighted average shares outstanding and loss per share of common stock for the periods indicated:



							Cumulative from Inception-
	Three months ended			Six months ended			August 5, 2010-
	June 30, 2011			June 30, 2011			June 30, 2011
Net loss attributable to Prospect Global Resources Inc.	$	(1,585,103	)	$	(17,661,853	)	$	(18,419,182	)
Weighted average number of common shares outstanding — basic		21,615,897			21,017,588			18,484,320
Dilution effect of restricted stock and warrants		—			—			—

Weighted average number of common shares outstanding — fully diluted		21,615,897			21,017,588			18,484,320

Loss per share of common stock:
Basic and fully diluted loss per share of common stock	$	(0.07	)	$	(0.84	)	$	(1.00	)

The Company has issued warrants to purchase shares of common stock, as discussed in Note 5 — Convertible Notes, Note 8 — Shareholders’ Equity and Note 11 — Subsequent Events. The Company issued secured convertible notes which contain embedded derivatives to receive additional shares of common stock, as further discussed in Note 6 — Derivative Financial Instruments. As of June 30, 2011, the derivative liabilities of the warrants and convertible notes could represent an additional 16,362,043 shares of common stock.