Earnings Per Share

Basic earnings per share ("EPS") is computed based on the weighted average number of shares of common stock outstanding. Diluted EPS is computed based on the weighted average number of common shares outstanding increased by dilutive common stock equivalents, attributable to stock option awards, restricted stock awards, warrants and the Series A Preferred Stock outstanding.

The following represents the common stock equivalents that were excluded from the computation of diluted shares outstanding because their effect would have been anti-dilutive for the three and nine months ended September 30, 2018 and 2017:



	Three Months Ended September 30,		Nine Months Ended September 30,
	2018	2017	2018	2017
Stock options, warrants and restricted stock	370,117,830	2,309,950	370,117,830	2,786,418
Series A redeemable convertible preferred stock	8,781,516	8,781,516	8,781,516	8,781,516
Total anti-dilutive common stock equivalents	378,899,346	11,091,466	378,899,346	11,567,934

The following represents a reconciliation of the numerators and denominators of the basic and diluted EPS computation:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2018			2017		2018			2017
Numerator
Net income (loss)	$	(332,429	)	$	1,429,173	$	(829,656	)	$	(322,825	)
Effects of Series A redeemable convertible preferred stock:
Less: Series A redeemable convertible preferred stock dividends	229,022			215,000		687,152			634,664
Less: Deemed dividend on Series A redeemable convertible preferred stock	—			—		2,269,042			—
Less: Accretion to redemption value of Series A redeemable convertible preferred stock	124,993			—		240,743			—
Net income (loss) attributable to common stockholders	$	(686,444	)	$	1,214,173	$	(4,026,593	)	$	(957,489	)
Denominator
Weighted average basic shares outstanding	97,935,348			44,552,892		75,844,719			44,362,367
Effect of dilutive securities:
Stock options, warrants and restricted stock	—			901,468		—			—
Series A redeemable convertible preferred stock	—			8,781,516		—			—
Weighted average diluted shares outstanding	97,935,348			54,235,876		75,844,719			44,362,367

EPS
Basic net income (loss) per share attributable to common stockholders	$	(0.01	)	$	0.03	$	(0.05	)	$	(0.02	)
Diluted net income (loss) per share attributable to common stockholders	$	(0.01	)	$	0.02	$	(0.05	)	$	(0.02	)