Basic and Diluted Loss per Share

6 Months Ended

Jun. 30, 2016

Note 2 — Basic and Diluted Loss per Share

Basic loss per common share is computed using the weighted average number of common shares outstanding during the period. Diluted loss per share is computed using the weighted average number of common shares and potential dilutive common shares that were outstanding during the period. Potential dilutive common shares consist of outstanding stock options, outstanding stock warrants, and convertible preferred stock.

The following table sets forth the computation of basic and diluted loss per share:

	Three months ended June 30				Six months ended June 30
	2016		2015		2016		2015
Numerator:
Net loss	$	(988,164)	$	(845,996)	$	(1,031,824)	$	(729,549)

Denominator:
Denominator for basic loss per share—weighted average shares		12,919,000		12,819,000		12,919,000		12,819,000
Dilutive effect of employee stock options and other warrants		-		-		-		-

Denominator for diluted loss per share—adjusted weighted average shares		12,919,000		12,819,000		12,919,000		12,819,000

Basic loss per share	$	(0.08)	$	(0.07)	$	(0.08)	$	(0.06)
Diluted loss per share	$	(0.08)	$	(0.07)	$	(0.08)	$	(0.06)

Options and warrants to purchase 1,870,585 shares of common stock for the three months and six months ended June 30, 2016, respectively, were not included in the denominator for diluted net loss per share because their effect would be antidilutive or because the shares were deemed contingently issuable. Options and warrants to purchase 1,897,025 shares of common stock for the three months and six months ended June 30, 2015, respectively, were not included in the denominator for diluted net loss per share because their effect would be antidilutive or because the shares were deemed contingently issuable.