Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2011

Net Income (Loss) Per Share [Abstract]

Net Income (Loss) Per Share

3. Net Income (Loss) Per Share

The Company reports earnings per share in accordance with Accounting Standards Codification 260, Earnings Per Share (ASC 260), which establishes standards for computing and presenting earnings per share. Basic and diluted net income (loss) per share is presented in conformity with the two-class method required for participating securities. Under the two-class method, basic net income (loss) per share is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Net income (loss) attributable to common stockholders is determined by allocating undistributed earnings between holders of common and convertible preferred stock, based on the contractual dividend rights contained in our preferred stock agreement. No preferred dividends have been declared and, as such, preferred dividends have not affected our computation of net income available to common stockholders. Diluted net income (loss) per share is computed by dividing net income (loss) by the sum of the weighted average number of common shares and the number of dilutive potential common share equivalents outstanding during the period. Dilutive common share equivalents consist of the incremental common shares issuable upon the conversion of the Series F convertible preferred stock to common shares.

In computing diluted earnings per share, common stock equivalents are not considered in periods in which a net loss is reported, as the inclusion of the common stock equivalents would be anti-dilutive. As a result, there is no difference between the Company’s basic and diluted loss per share for the three and nine months ended September 30, 2011.

	Three months ended September 30,
Basic and diluted net income (loss) per share	2011			2010
Net income (loss)	$	(476,706	)	$	4,833,151
Less: Accretion of Preferred stock		—			(86,455	)
Less: Income allocated to convertible preferred shares		—			(727,847	)
Income (loss) available to common stockholders for the purpose of calculating basic & diluted EPS	$	(476,706	)	$	4,018,849
Weighted average common shares, basic		31,662,313			27,055,645
Dilutive effect of Series F preferred share conversion		—			4,900,000
Weighted average common shares, diluted		31,662,313			31,955,645
Net income (loss) per share, basic	$	(0.02	)	$	0.15
Net income (loss) per share, diluted	$	(0.02	)	$	0.13

	Nine months ended September 30,
Basic and diluted net income (loss) per share	2011			2010
Net income (loss)	$	(2,086,853	)	$	1,330,394
Less: Accretion of Preferred stock		—			(256,545	)
Less: Income allocated to convertible preferred shares		—			(167,220	)
Income (loss) available to common stockholders for the purpose of calculating basic & diluted EPS	$	(2,086,853	)	$	906,629
Weighted average common shares, basic		28,934,559			26,566,634
Dilutive effect of Series F preferred share conversion		—			4,900,000
Weighted average common shares, diluted		28,934,559			31,466,634
Net income (loss) per share, basic	$	(0.07	)	$	0.03
Net income (loss) per share, diluted	$	(0.07	)	$	0.03