LOSS PER SHARE

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Loss Per Share

14. LOSS PER SHARE

Basic loss per common share is based on the weighted average number of common shares outstanding in each period and earnings adjusted for preferred stock dividend requirements. Diluted earnings per common share assumes that any dilutive convertible preferred shares outstanding at the beginning of each period were converted at those dates, with related interest, preferred stock dividend requirements and outstanding common shares adjusted accordingly. It also assumes that outstanding common shares were increased by shares issuable upon exercise of those stock options and warrants for which market price exceeds exercise price, less shares which could have been purchased by the Company with related proceeds. The convertible preferred stock and outstanding stock options and warrants were not included in the computation of diluted earnings per common share for the twelve months ended December 31, 2012 and 2011, respectively since it would have resulted in an antidilutive effect.

The following table sets forth the computation of basic and diluted loss per share (in thousands, except per share data):

	Year Ended December 31, (In thousands, except for per share data)
	2012			2011
Numerator
Basic and diluted loss	$	(7,955	)	$	(6,121	)
Denominator
Basic and diluted earnings per share - weighted average shares outstanding		1,265,270			786,579
Basic and diluted loss per common share	$	(0.01	)	$	(0.01	)

All common stock equivalents in the years ended December 31, 2012 and 2011 were excluded from the above calculation as their effect was anti-dilutive.

Anti-dilutive securities (based on conversions to common shares) not included in net loss per share calculation (in thousands):

	Year Ended December 31
	December 31, 2012		December 31, 2011
Convertible Series A preferred stock		441		457
Convertible Series B preferred stock		305,648		782,882
Convertible Series G preferred stock		100		1,920
Convertible Series S preferred stock		1,000,000		1,000,000
Stock warrants		267,350		183,583
Convertible debt		722,910		262,626
Common stock options		190,600		-
Series B preferred stock options		250,000		-