NET LOSS PER COMMON SHARE

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
		2014			2013			2014			2013
Numerator for basic and diluted loss per share:
Net loss	$	(2,074	)	$	(5,619	)	$	(3,763	)	$	(8,392	)
Preferred dividends		(13	)		(13	)		(25	)		(25	)
Net loss available to common shareholders		(2,087	)		(5,632	)	$	(3,788	)	$	(8,417	)
Denominator for basic and dilutive loss per share – weighted-average shares outstanding		91,930,400			78,581,502			90,293,758			77,718,825
Net loss		(0.02	)		(0.07	)		(0.04	)		(0.11	)
Preferred dividends		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Basic and diluted loss per share available to common shareholders		(0.02	)		(0.07	)		(0.04	)		(0.11	)

 The following potentially dilutive securities have been excluded from the computations of diluted weighted-average shares outstanding for the periods presented, as they would be anti-dilutive:

Dilutive securities	For the three and six months ended June 30,
	2014		2013
Convertible notes payable		-		175,013
Convertible preferred stock		46,027		46,027
Stock Options		3,668,416		3,436,221
Warrants		1,973,562		12,591,168
Total anti-dilutive common share equivalents		5,668,005		16,248,429