NET INCOME (LOSS) PER COMMON SHARE

6 Months Ended

Jun. 30, 2013

Notes to Financial Statements

Note 3 - NET INCOME (LOSS) PER COMMON SHARE

 Basic income (loss) per common share is calculated by dividing net income (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 (loss) 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 and if-converted methods.  For diluted loss per share calculation purposes, the net loss available to common 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 earnings (loss) per share:

(Amounts in thousands except share and per share amounts)	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Numerator for basic earnings (loss) per share:
Net income (loss)	$	(5,619	)	$	1,051		$	(8,392	)	$	(7,537	)
Preferred dividends		(13	)		(13	)		(25	)		(25	)
Net income (loss) available to common shareholders		(5,632	)		1,038		$	(8,417	)	$	(7,562	)
Numerator for diluted earnings (loss) per share:
Net income (loss) available to common shareholders	$	(5,619	)	$	1,038			(8,392	)		(7,537	)
Preferred dividends		(13	)		13			(25	)		(25	)
Interest expense on convertible debt		-			1			-			-
Net income (loss) for diluted earnings (loss) per share	$	(5,632	)	$	1,052			(8,417	)		(7,562	)
Denominator for basic earnings (loss) per share – weighted-average shares outstanding		78,581,502			68,554,014			77,718,825			68,271,465
Effect of dilutive securities		-			13,911,199			-			-
Denominator for diluted earnings (loss) per share – weighted-average shares outstanding		78,468,257			82,465,213			77,718,825			68,271,465
Basic income (loss) per share:
Net income (loss)		(0.07	)		0.02			(0.11	)		(0.17	)
Preferred dividends		(0.00	)		(0.00	)		(0.00	)		(0.01	)
Net income (loss) available to common shareholders		(0.07	)		0.02			(0.11	)		(0.18	)
Diluted income (loss) per share:
Net income (loss)		(0.07	)		0.01			(0.11)			(0.18	)

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

Dilutive securities	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Restricted stock grants		-		-		-		360,000
Convertible notes payable		-		-		-		64,719
Convertible preferred stock		46,179		46,028		46,578		47,885
Stock options		100,187		537,727		101,088		1,141,085
Warrants		-		954,029		308,994		13,748,783
Total dilutive securities		146,366		1,537,784		456,660		15,362,472