Earnings Per Share Data

9 Months Ended

Sep. 30, 2011

10. Earnings Per Share Data

Basic earnings per share (“EPS”) is calculated by dividing net income or loss applicable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by using the weighted-average number of common shares outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the dilutive potential shares of common stock had been issued. Dilutive potential shares of common stock include convertible preferred stock, options and warrants. The potential dilution for options and warranty is based on the average market price during the period. The average market price of the common stock was $0.2979 during the nine months ended September 30, 2011. For periods presented, the computation of diluted loss per share excludes the portion of convertible preferred stock, options and warrants that are anti-dilutive.

On May 4, 2011, the Series B Convertible Preferred Stock and Series C Convertible Preferred Stock were converted and the Series E Convertible Redeemable Preferred Stock was restructured under a Preferred Stock Exchange Agreement more fully described in Note 13.

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2011			2010			2011
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net income (loss) applicable to common stockholders — numerator for basic and diluted earnings per share	$	(197,295	)	$	(916,094	)	$	(1,307,811	)	$	3,218,922


Weighted — average common shares and dilutive potential common shares outstanding — denominator for diluted earnings per share		36,047,551			55,699,005			36,029,193			48,120,853


Net income (loss) per share:
Basic and Diluted	$	(0.01	)	$	(0.02	)	$	(0.04	)	$	0.07


Anti-dilutive securities excluded from diluted earnings per share:
Stock options		5,194,385			6,161,460			4,641,092			5,327,273
Convertible preferred stock — Series B		2,206,896			—			2,206,896			—
Convertible preferred stock — Series C		3,333,333			—			3,333,333			—
Convertible preferred stock — Series E		13,333,333			16,000,000			13,333,333			14,666,667