NET LOSS PER COMMON SHARE

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Note 3 - NET LOSS PER COMMON SHARE

Basic loss per common share is calculated by dividing net loss available to common shareholders for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income available to common shareholders for the period by the weighted-average number of common shares outstanding during the period, adjusted to include, if dilutive, potential dilutive shares consisting of convertible preferred stock, convertible notes payable, stock options and warrants, calculated using the treasury stock method. For diluted earnings per share calculation purposes, the net income available to commons shareholders is adjusted to add back any preferred stock dividends and any interest on convertible debt reflected in the condensed consolidated statement of operations for the respective periods.

The table below presents the computation of basic and diluted loss per share:

(Amounts in thousands except share and per share amounts)	Three Months Ended March 31,
	2012			2011
Numerator for basic loss per share:
Net loss	$	(8,590	)	$	(7,858	)
Preferred dividends		(13	)		(103	)
Net loss available to common shareholders	$	(8,603	)	$	(7,961	)
Denominator for basic and diluted loss per share — weighted-average shares outstanding		67,988,916			25,317,525
Net loss	$	(0.13	)	$	(0.31	)
Preferred dividends		(0.00	)		(0.00	)
Net loss available to common shareholders	$	(0.13	)	$	(0.31	)

The Company has excluded the following securities from the calculation of diluted loss per share, as their effect would have been antidilutive:

Dilutive securities	Three Months Ended March 31,
	2012		2011
Restricted stock grants		360,000		360,000
Convertible notes payable		164,950		11,488,871
Convertible preferred stock		46,896		11,328,318
Stock options		3,007,713		1,731,907
Warrants		28,453,760		17,114,374
Total dilutive securities		32,033,319		42,023,470