Loss Per Share

9 Months Ended

Sep. 30, 2011

Loss Per Share

Loss Per Share

Note E. Loss Per Share

The following is the reconciliation of the numerators and denominators of the basic and diluted loss per share computations:

	Three Months Ended						Nine Months Ended
	September 30, 2011			September 30, 2010			September 30, 2011			September 30, 2010
Loss from continuing operations, net of income taxes, before discontinued operations	$	(12,090,035	)	$	148,997		$	(35,456,404	)	$	(12,546,786	)
Income from discontinued operations	—			—			—			31,390
Gain on sale of discontinued operations	—			—			—			500,217
Accretion and dividends and deemed dividends on Series C Preferred Stock	—			(1,744,127		)	—			(5,276,009		)
Net loss attributable to common shareholders	$	(12,090,035	)	$	(1,595,130	)	$	(35,456,404	)	$	(17,291,170	)
Basic and diluted:
Common shares outstanding, beginning of period	119,327,864			72,126,226			117,911,278			70,567,781
Weighted average common shares issued during the period	293,454			3,341,685			815,044			2,066,077
Weighted average shares outstanding—basic and diluted	119,621,318			75,467,911			118,726,322			72,633,858
Net loss per weighted average share, basic and diluted:
From loss from continuing operations, before discontinued operations, attributable to common stockholders	$	(0.10	)	$	(0.02	)	$	(0.30	)	$	(0.25	)
From income from discontinued operations	—			—			—			—
From gain on sale of discontinued operations	—			—			—			$	0.01
Net loss per weighted average share, basic and diluted	$	(0.10	)	$	(0.02	)	$	(0.30	)	$	(0.24	)

As of September 30, 2011 and 2010, shares of common stock issuable upon the exercise of options and warrants were excluded from the diluted average common shares outstanding, as their effect would have been antidilutive.  In addition, for the three and nine month period ended September 30, 2010, shares of common stock issuable upon the conversion of Series B Preferred Stock and Series C Preferred Stock and related dividends were excluded from the diluted weighted average common shares outstanding as their effect would also have been antidilutive.  Basic earnings per share excludes dilution and is computed by dividing income attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company, except when the effect would be antidilutive.

The table below summarizes the actual number of options and warrants and convertible preferred stock that were excluded from the calculation above due to their effect being antidilutive:

	September 30, 2011	September 30, 2010
Common Stock issuable upon the exercise of:
Options	14,843,783	12,337,319
Warrants	15,442,350	16,417,892
	30,286,133	28,755,211
Common Stock issuable upon the conversion of redeemable convertible Series B Preferred Stock	—	251,677
Common Stock issuable upon the conversion of redeemable convertible Series C Preferred Stock	—	27,437,434
Common Stock issuable upon the conversion of subordinated convertible notes	5,479,452	—

The table below details out shares of common stock underlying securities for which the securities would have been considered dilutive at September 30, 2011 and 2010, had the Company not been in a loss position:

	# of Underlying Common Shares
	September 30, 2011	September 30, 2010
Employee stock options	46,202	12,141,819
Warrants to purchase common stock	—	16,417,892
Series B Convertible Preferred Stock	—	251,677
Series C Convertible Preferred Stock	—	27,437,434
Total	46,202	56,248,822