BASIC AND DILUTED EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2012

BASIC AND DILUTED EARNINGS PER SHARE [Text Block]

16. 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 7,516,491, and 61,706,635 as of December 31, 2012 and 2011, respectively. This includes outstanding promissory notes totaling $187,500 and accrued interest of $25,682 which may convert into 3,077,997 shares at the option of the note holder. Outstanding options and warrants to purchase shares of common stock for the years ended December 31, 2012 and 2011 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, 2012 and 2011:

		2012			2011
Numerator:
Net loss available for common stock holders	$	(10,254,344	)	$	(10,316,294	)
Denominator:
Basic
Weighted average outstanding shares of common stock		114,944,800			113,608,523
Diluted
Warrants		–			–
Stock options		–			–
Common stock and common stock equivalents		114,944,800			113,608,523
Loss Per Share:
Basic	$	(0.09	)	$	(0.09	)
Diluted	$	(0.09	)	$	(0.09	)