Income (Loss) Per Share

9 Months Ended

Sep. 30, 2015

3. Income (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) 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) by the weighted average number of shares of common stock outstanding during the period plus dilutive common stock equivalents, using the treasury stock method.

Common stock equivalents for convertible preferred stock of 1,321,537 shares were excluded from the calculation of loss per share for the nine months and three months ended September 30, 2015, because they were not dilutive; these shares would have been dilutive if the Company had not had a net loss for the these periods.

Common stock equivalents for convertible preferred stock of 1,101,281 shares were excluded from the calculation of loss per share for the nine months and three months ended September 30, 2014, because they were not dilutive; these shares would have been dilutive if the Company had not had a net loss for the these periods.

Stock options of 200,000 were excluded from the calculation of income per share for the nine months and three months ended September 30, 2015 and 2014, because they were anti-dilutive.