Basic and Diluted Net Income (Loss) Per Common Share

6 Months Ended

Jun. 30, 2014

Basic and Diluted Net Income (Loss) Per Common Share

NOTE – 2 Basic and Diluted Net INCOME (Loss) Per Common Share

Milestone presents “basic” and “fully diluted” earnings (loss) per common share applicable to common stockholders, and, if applicable, “diluted” earnings (loss) per common share applicable to common stockholders pursuant to the provisions of FASB ASC Topic 260. Basic earnings (loss) per common share is calculated by dividing net income or loss applicable to common stockholders by the weighted average number of common shares outstanding and to be issued during each period. The calculation of diluted earnings per common share is similar to that of basic earnings per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, such as those issuable upon the exercise of stock options and warrants were issued during the period.

For the six months ending June 30, 2014 and 2013, Milestone calculated basic and fully diluted earnings per common share as described in the previous paragraph. The major differences between the basic and diluted shares outstanding for the six-months ended June 30, 2014 were from 259,532 shares related to in-the-money options (see Note 5) and 2,750,491 of common shares that would be issued upon conversion of the convertible preferred shares (see Note 13).