Stockholders Equity

6 Months Ended

Jun. 30, 2011

Stockholders Equity

Note 3: Shareholders’ Equity

During February and March of 2011, the Company issued and sold 400,000 shares of the Company’s common stock at $0.25 per share.  The sale of the common stock resulted in gross proceeds of $100,000 and net proceeds of $96,816 to the Company after deducting offering costs of $3,184. The Company has used a portion of, and intends to continue to use, the proceeds of their initial public offering for product development expenses.

Note 4: Net Income Per Share

Computation of net income per share is as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
	2011	2010	2011	2010
Net income (loss) attributable to SMTP.com	$           202,927	$             75,511	$           360,289	$           143,896
Basic and diluted weighted average common shares outstanding	13,840,264	13,440,000	13,703,743	13,440,000
Add incremental shares for:
Warrants	547,089		330,957
Stock options	1,097,552	-	851,313	-
Diluted weighted average common shares outstanding	15,484,904	13,440,000	14,886,013	13,440,000
Net income (loss) per share:
Basic	$                 0.01	$                 0.01	$                 0.03	$                 0.01
Diluted	$                 0.01	$                 0.01	$                 0.02	$                 0.01