3.	Loss per Share

Basic earnings per share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding, and does not include the impact of any potentially dilutive common stock equivalents. Common stock equivalents, including warrants and options to purchase the Company's common stock, are excluded from the calculations when their effect is anti-dilutive. At September 30, 2011 and 2010, the calculation of diluted weighted average shares did not include preferred stock, common stock warrants, or options that are potentially convertible into common stock as those would be anti-dilutive due to the Company’s net loss position.

Securities not considered in the calculation of diluted weighted average shares, but that could be dilutive in the future as of September 30, 2011 and 2010, were as follows:

	September 30,
	2011		2010
Preferred stock		59,065		59,065
Common stock warrants		3,784,185		3,165,768
Common stock options		2,318,706		2,151,372

Total potential dilutive securities		6.161.956		5,376,205