Income (Loss) Per Common Share

9 Months Ended

Sep. 30, 2014

Notes to Financial Statements

Income (Loss) Per Common Share

Basic income (loss) per share is computed by dividing the net income or loss attributable to the common stockholders by the weighted average number of shares of common stock outstanding during the period. Fully diluted income (loss) per share is computed similar to basic income (loss) per share except that the denominator for fully diluted income per share is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued in order to present their dilutive effect unless the effect of such potential shares would be antidilutive. Potential common shares consist of incremental common shares issuable upon the exercise of warrants and convertible preferred shares.

For the three months ended September 30, 2014, the number of shares used to compute fully diluted earnings per share is comprised of the following:

Weighted average number of common shares outstanding	238,583,031
Common share equivalents of Series A Convertible Preferred Stock	11,663,921
Common share equivalents of Series B Convertible Preferred Stock	124,509,785
Common share equivalents of Series C Convertible Preferred Stock	20,000,000
Total	394,756,737

The market price of the outstanding common stock was less than the exercise price of the warrants and therefore the warrants are considered anti-dilutive and not included in the calculation of fully diluted earnings per share.