BASIC AND DILUTED EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2012

BASIC AND DILUTED EARNINGS PER SHARE [Text Block]

11. BASIC AND DILUTED EARNINGS PER SHARE

Basic earnings (loss) per common share is computed by dividing net earnings (loss) by the weighted average number of basic common shares outstanding during the period. Diluted earnings (loss) per share are calculated based on the weighted average number of basic common shares outstanding adjusted for the dilutive effect, if any, of stock options, warrants and other dilutive securities outstanding. Outstanding options, warrants and other dilutive securities to purchase 6,349,910 and 60,714,517 shares of common stock for the three and six months ended June 30, 2012 and 2011, respectively, are not included in the computation of diluted earnings per share as the effect of the assumed exercise of these options and warrants, and other dilutive securities would be anti-dilutive. During the three months ended June 30, 2012, 15,333,350 and 40,000,000 warrants with an exercise price of $1.10 and $0.38, respectively, expired unexercised.

Components of basic and diluted loss per share were as follows:

		Three Months Ended June 30,
		2012			2011
		(unaudited)			(unaudited)
Net loss available for common stock holders	$	(2,397,676	)	$	(3,073,418	)
Weighted average basic outstanding shares of common stock		114,631,186			113,483,661
Dilutive effect of warrants and stock options		-			-
Weighted average diluted outstanding shares of common stock		114,631,186			113,483,661
Loss per share:
Basic	$	( 0.02	)	$	( 0.03	)
Diluted	$	( 0.02	)	$	( 0.03	)

		Six Months Ended June 30,
		2012			2011
		(unaudited)			(unaudited)
Net loss available for common stock holders	$	(4,905,564	)	$	(5,350,798	)
Weighted average basic outstanding shares of common stock		114,475,722			113,397,048
Dilutive effect of warrants and stock options		-			-
Weighted average diluted outstanding shares of common stock		114,475,722			113,397,048
Loss per share:
Basic	$	( 0.04	)	$	( 0.05	)
Diluted	$	( 0.04	)	$	( 0.05	)