Earnings Per Share

3 Months Ended

Mar. 31, 2015

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 (loss) earnings per common stock:

	(Unaudited)
	Three Months Ended March 31,
	2015			2014
Net loss to QKL Stores, Inc. for computing basic loss per share		(4,583,173	)		(3,056,451	)
Undistributed earnings allocated to Series A Convertible Preferred Stock		-			-
Net loss attributable to ordinary shareholders for computing basic (loss) earnings per common stock		(4,583,173	)		(3,056,451	)
Weighted-average shares of common stock outstanding in computing net income per common stock
Basic		1,522,326			1,522,326
Dilutive shares:
Conversion of Series A Convertible Preferred Stock		22,059			22,059
Dilutive effect of stock warrants and options		-			-
Anti-dilutive effect of preferred stock		(22,059	)		(22,059	)
Diluted		1,522,326			1,522,326
Basic loss per share of common stock	$	(3.01	)	$	(2.01	)
Diluted loss per share	$	(3.01	)	$	(2.01	)

The 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 March 31, 2015 and 2014 were lower than the options and warrants exercise price.