Net Income (Loss) Per Common Share Basic and Diluted

12 Months Ended

Dec. 31, 2011

Net Income (Loss) Per Common Share - Basic and Diluted [Abstract]

Net Income (Loss) Per Common Share - Basic and Diluted

Note 16. Net Income (Loss) Per Common Share – Basic and Diluted.

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of common stock and common stock equivalents outstanding during the period. Common stock equivalents were taken into consideration in calculating diluted net income per common share for the year ended December 31, 2010. Common stock equivalents were not considered in calculating diluted net loss per common share for the year ended December 31, 2011 as their effect would be anti-dilutive. The computation of the Company's basic and diluted earnings per share for the year ended:

	2011			2010
Net income (loss) available to common shareholders (A)	$	(4,175,235	)	$	772,934
Weighted average common shares outstanding (B)		81,243,262			66,649,323
Dilutive effect of employee equity incentive plans		-			481,891
Dilutive effect of warrants		-			25,486
Weighted average common shares outstanding, assuming dilution (C)		83,181,839			67,156,700
Basic earnings per common share (A)/(B)	$	0.05		$	0.01
Diluted earnings per common share (A)/(C)	$	0.015		$	0.01

For 2011, a total of 7,439,999 shares of common stock were excluded from the calculation of diluted earnings per common share, of which: (a) 2,500,000 shares were for outstanding warrants, all of which warrants had an exercise price greater than the market value of the common share as of the periods then ended (“out-of-the-money”), and (b) 4,939,999 shares were for outstanding and vested stock options, of which 550,000 shares were for in-the-money vested and exercisable stock options, 2,086,248 shares were for stock options had an exercise price less than or equal to the market value of the common share as of the period then ended (“in-the-money”) vested and exercisable stock options, and 2,303,751 shares were for vested and un-exercisable stock options. Outstanding in-the-money warrants and stock options could be included in the calculation in the future if the Company reports a profit and out-of-the money warrants and stock options could be included in the calculation in the future if the market value of the Company's common shares increases and is greater than the exercise price, the Company reports a profit, and the exercisability restrictions are met.

For 2010, a total of 4,578,266 shares of common stock were excluded from the calculation of diluted earnings per common share, of which: (a) 1,000,000 shares were for outstanding out-of-the-money warrants, and (b) 3,578,266 shares were for outstanding and vested stock options, of which 1,186,875 shares were for out-of-the-money vested and exercisable stock options and ; and because , of which: (a) 2,391,391 shares were for vested and un-exercisable stock options. Outstanding out-of-the money warrants and stock options could be included in the calculation in the future if the market value of the Company's common shares increases and is greater than the exercise price, the Company reports a profit, and the exercisability restrictions are met or removed.