NOTE 12 — LOSS PER SHARE

Net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. The following were not included in the computation of diluted net loss per share for the three months ended June 30, 2011 and 2010 as their inclusion would be antidilutive:

	•		Stock options and restricted units to purchase 5,729,682 shares of common stock.

	•		Convertible promissory notes that if-converted would result in 659,062 shares of common stock.

The following were not included in the computation of diluted net loss per share for the six months ended June 30, 2011 and 2010 as their inclusion would be antidilutive:

	•		Warrants to purchase 5,500,000 shares of common stock at $0.50 per share were outstanding and expire in November 2011. These were exercised in May 2011.

	•		Stock options and restricted units to purchase 5,729,682 shares of common stock.

	•		Convertible promissory notes that if-converted would result in 659,062 shares of common stock.