Note M - Net Loss Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share [Text Block]

NOTE M–NET LOSS PER SHARE

We compute and present both basic and diluted earnings per share (“EPS”) on the face of the statement of operations.  Basic EPS is computed using the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock at the beginning of the period (or as of the date of issuance if issued in the current year) being reported on, and the effect was dilutive.  Our weighted average shares outstanding used for computing diluted loss per share were the same as those used for computing basic loss per share for each of the three-month and six-month periods ended June 30, 2011 and 2010 because inclusion of our convertible notes, restricted stock, stock options and warrants (approximately 63,702,000 and 6,768,000 shares of common stock, if exercised, for the three-month periods ended June 30, 2011 and June 30, 2010, respectively, and approximately 41,331,000 and 6,045,000 shares of common stock, if exercised, for the six-month periods ended June 30, 2011 and June 30, 2010, respectively) would be antidilutive.  The three months and six months ended June 30, 2011 and 2010 include warrants to purchase an aggregate of 60,000 shares of common stock at exercise prices ranging from $2.00 to $2.20 per share, with expiration dates ranging from 2012 to 2015.  The three months and six months ended June 30, 2011 also include approximately 54,313,000 and 31,807,000 shares of common stock, respectively,  that would be issued if Victory Park were to convert all of their outstanding convertible notes, plus accrued interest, as of March 17, 2011, the first day that their notes became convertible.

Reconciliation between the number of issued shares shown on the balance sheet and the number of shares used to determine EPS at June 30, 2011 and June 30, 2010:

	2011			2010
Issued shares per balance sheet		92,681,832			92,242,751
Unvested restricted stock		(40,000	)		(352,900	)
Treasury Stock		--			(9,200	)
Shares used in determining EPS		92,641,832			91,880,651