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Earnings Per Share
 6 Months Ended
Jun. 30, 2013
Earnings Per Share [Abstract]  
Earnings Per Share

NOTE 6 - EARNINGS PER SHARE

 

The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share are computed using the weighted average number of shares outstanding during the fiscal year. Potentially dilutive common shares consist of convertible preferred stock (using the if-converted method) and exercisable warrants and stock options outstanding (using the treasury method). Holder of Series A convertible preferred stock participate in dividends of the Company on the same basis as holders of the Company's common stock and is therefore included in the calculation of basic earnings per share using the two class method.

 

The following table sets forth the computation of basic and diluted net income per common share:

 

    (Unaudited)     (Unaudited)  
    Three Months
Ended June 30,		     Six Months
Ended June 30,		  
    2013     2012     2013     2012  
Net (loss) income to QKL Stores, Inc. for computing basic net income per share   $ (1,454,211 )   $ 9,611     $ (1,050,941 )   $ 840,212  
Undistributed earnings allocated to Series A Convertible Preferred Stock     -       1,416       -       123,805  
Net (loss) income attributable to ordinary shareholders for computing basic net (loss) income per ordinary share   $ (1,454,211 )   $ 8,195     $ (1,050,941 )   $ 716,407  
                                 
Weighted-average shares of common stock outstanding                                
Basic     1,522,326       1,312,531       1,516,140       1,309,296  
Dilutive shares:                                
Conversion of series A convertible preferred stock     22,059       230,773       28,043       234,023  
Dilutive effect of stock warrants and options     -       -       -       -  
Anti-dilutive effect of preferred stock     (22,059 )     -       (28,043 )     -  
                                 
Diluted     1,522,326       1,543,304       1,476,735       1,543,319  
                                 
Basic earnings per share   $ (0.955 )   $ 0.006     $ (0.693 )   $ 0.547  
Diluted earnings per share   $ (0.955 )   $ 0.006     $ (0.693 )   $ 0.544  

  

The 490,369 shares of stock warrants and 84,708 options were not included in the computation of diluted net earnings per share as their effects would have been anti-dilutive since the average share price for the three months ended June 30, 2013 and 2012 were lower than the options and warrants exercise price.