NET LOSS PER COMMON SHARE

3 Months Ended

Mar. 31, 2014

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 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, 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 loss per share:

(Amounts in thousands except share and per share amounts)	Three Months Ended March 31,
	2014			2013
Numerator for basic and diluted loss per share:
Net loss	$	(1,690	)	$	(2,773	)
Preferred dividends		(13	)		(13	)
Net loss available to common shareholders	$	(1,703	)	$	(2,786	)
Denominator for basic and dilutive loss per share — weighted-average shares outstanding		88,604,221			76,846,563
Net loss	$	(0.02	)	$	(0.04	)
Preferred dividends		(0.00	)		(0.00	)
Basic and diluted loss per share available to common shareholders	$	(0.02	)	$	(0.04	)

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

Potential Dilutive securities	Three Months Ended March 31,
	2014		2013
Restricted stock grants		—		199,333
Convertible notes payable		113,885		40,805
Convertible preferred stock		45,392		46,991
Stock options		2,102,673		1,140,608
Warrants		3,606,108		9,160,458
Total potential dilutive securities		5,868,058		10,588,195