BASIC AND DILUTED EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2011

BASIC AND DILUTED EARNINGS PER SHARE [Text Block]

17. BASIC AND DILUTED EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per common share is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding during the period which includes the effect of the outstanding deferred stock units. Diluted earnings (loss) per share are calculated based on the weighted average number of common shares outstanding adjusted for the dilutive effect, if any, of stock options and warrants outstanding. Total outstanding stock options and warrants to purchase shares of the Company’s common stock were 61,706,635, and 60,616,504 as of December 31, 2011 and 2010, respectively. This includes outstanding promissory notes totaling $100,000 which may convert into 625,000 shares at the option of the note holder. Outstanding options and warrants to purchase shares of common stock for the years ended December 31, 2011 and 2010 are not included in the computation of diluted earnings (loss) per share as the effect of the assumed exercise of these options and warrants would be anti-dilutive.

The following table includes the computation of basic and diluted earnings (loss) per share for the years ended December 31, 2011 and 2010:

		2011			2010
Numerator:
Net loss available for common stock holders	$	(10,316,294	)	$	(21,205,410	)
Denominator:
Basic
Weighted average outstanding shares of common stock		113,608,523			112,149,570
Diluted
Warrants		–			–
Stock options		–			–
Common stock and common stock equivalents		113,608,523			112,149,570
Loss Per Share:
Basic	$	(0.09	)	$	(0.19	)
Diluted	$	(0.09	)	$	(0.19	)