EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2015

Basic earnings per share includes no dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the periods presented. The calculation of basic earnings per share for the six months ended June 30, 2015 includes the weighted average of common shares outstanding. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity, such as convertible preferred stock, stock options, warrants or convertible securities. The calculation of diluted earnings per share for the six months ended June 30, 2015 does not include options to purchase 2,037,388 shares, warrants to purchase 215,201, Series B Preferred stock for 8,064,534 shares and warrants to purchase 4,032,267 shares due to their anti-dilutive effect.

The following is a reconciliation of the numerator and denominator for basic and diluted earnings per share for the six months ended June 30, 2015 and 2014:



	Three Months Ended June 30,					Six Months Ended June 30,
	2015			2014		2015			2014
Basic Earnings per Share
Numerator:
Net income available to common shareholders	$	(445,195	)	$	7,001,082	$	(17,411,650	)	$	7,863,247
Denominator:
Weighted-average shares outstanding	28,130,575			22,826,102		28,124,492			22,025,316
Basic earnings per share	$	(0.02	)	$	0.31	$	(0.62	)	$	0.36

Diluted Earnings per Share
Numerator:
Net income available to common shareholders	$	(445,195	)	$	7,001,082	$	(17,411,650	)	$	7,863,247
Denominator:
Weighted-average shares outstanding	28,130,575			22,826,102		28,124,492			22,025,316
Effect of dilutive securities
Stock options and warrants	—			1,417,570		—			1,178,626
Preferred stock	—			603,784		—			675,558
Diluted weighted-average shares outstanding	28,130,575			24,847,456		28,124,492			23,879,500
Diluted earnings per share	$	(0.02	)	$	0.28	$	(0.62	)	$	0.33