Note 14 - Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Text Block]

14. Net Income (Loss) Per Share

The calculation of diluted loss per common and common equivalent share is as follows:

	March 31,
	2013			2012
Net income (loss) applicable to common stock	$	1,978,664		$	(3,196,401	)
Add: Interest expense attributable to senior secured notes		4,085,142			--
Less: Gain on change in fair value of embedded derivative liability		(11,850,000	)		--
Net loss applicable to dilutive common stock	$	(5,786,194	)	$	(3,196,401	)
Weighted average number of common shares outstanding - Basic:		95,950,234			95,314,825
Effect of dilutive securities:
Convertible senior secured notes		412,047,811			--
Weighted average number of common shares outstanding - Diluted		507,998,045			95,314,825
Net loss per share - Diluted	$	(0.01	)	$	(0.03	)

The Company computes and presents 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.  The following potentially dilutive securities were excluded from the calculation of diluted net loss per share, as the effect would have been anti-dilutive:

	March 31,
	2013		2012
Victory Park convertible debt upon conversion to common stock (1)		--		62,986,376
Options to purchase common stock		17,875,698		9,994,060
Warrants to purchase common stock		20,000		60,000
Unvested restricted stock		20,000		40,000
		17,915,698		73,080,436

(1) Assumes conversion of principal plus accrued interest as of March 31.

Reconciliation between the number of issued shares shown on the balance sheet and the number of shares used to determine EPS at March 31, 2013 and 2012:

	2013			2012
Issued shares per balance sheet		95,978,952			95,374,927
Unvested restricted stock		(20,000	)		(40,000	)
Shares used in determining EPS		95,958,952			95,334,927