BASIC AND DILUTED LOSS PER SHARE

3 Months Ended

Mar. 31, 2013

BASIC AND DILUTED LOSS PER SHARE [Text Block]

11. BASIC AND DILUTED LOSS 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 7,606,059 and 61,983,885 shares of common stock for the three months ended March 31, 2013 and 2012, 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. This includes outstanding promissory notes with related parties totaling $187,500 and accrued interest of $31,384 which may convert into 3,174,315 shares at the option of the note holder.

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

		Three Months Ended March 31,
		2013			2012
		(unaudited)			(unaudited)
Net loss available for common stock holders	$	(2,150,846	)	$	(2,507,888	)
Weighted average basic outstanding shares of common stock		116,871,503			114,320,260
Dilutive effect of warrants and stock options		–			–
Weighted average diluted outstanding shares of common stock		116,871,503			114,320,260
Loss per share:
Basic	$	(0.02	)	$	(0.02	)
Diluted	$	(0.02	)	$	(0.02	)