Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Property and Equipment

Our property and equipment is comprised of the following:

	June 30, 2013		December 31, 2012
Equipment	$	13,754	$	13,754
Machinery and equipment		2,948,771		2,611,933
Purchased software		145,623		129,753
Furniture and fixtures		13,090		13,090
Subtotal – property and equipment, at cost		3,121,238		2,768,530
Less accumulated depreciation		(835,882)		(763,315)
Net property and leasehold improvements	$	2,285,356	$	2,005,215

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the three months ended June 30, 2013:

Numerator for basic earnings per share calculation - income  attributable to common shareholders	$	3,106,826
Interest on 8% convertble promissory notes		179,537
Dividends for 10% convertible preferred stock		175,050
Accretion of discount on 10% convertible preferred stock		226,457
Numerator for diluted earnings per share calculation - income attributable to common shareholders	$	3,687,870
Denominator for basic earnings per share - weighted-average shares outstanding		29,563,990
Incremental shares attributable to:
Options and warrants		41,128
8% convertible promissory notes		22,195,474
10% convertible preferred stock		7,021,230
Denominator for diluted earnings per share		58,821,822
Basic earnings per share	$	0.11
Diluted earnings per share	$	0.06