Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

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Net Income (Loss) Per Share
3 Months Ended
Mar. 31, 2014
Net Income (Loss) Per Share [Abstract]  
Net Income (Loss) Per Share
8.           Net Income (Loss) Per Share
 
Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of the common shares issuable upon the exercise of stock options and warrants. Potentially dilutive common shares are excluded from the calculation if their effect is antidilutive. At March 31, 2014 basic and diluted common shares outstanding exclude 500,000 common shares that are held in escrow and subject to forfeiture. At March 31, 2014, there were options and warrants to purchase 10,330,001 and 6,119,864 shares of common stock, respectively, outstanding which could potentially dilute future net income (loss) per share. At March 31, 2014 the Company also has outstanding convertible debt which is initially convertible into 4,818,605 shares of common stock, which could potentially dilute future net income (loss) per share. The number of shares the convertible debt could be converted into could potentially increase under certain circumstances related to the market price of the Company’s common stock at the time of conversion. At March 31, 2013, there were options and warrants to purchase 9,860,001 and 4,817,538 shares of common stock, respectively, outstanding which could potentially dilute future net income (loss) per share. At March 31, 2013 the Company also had outstanding convertible debt which was initially convertible into 3,516,729 shares of common stock, which could potentially dilute future net income (loss) per share.
 
Basic and diluted net loss per share was calculated as follows:
 
   
For the Three Months Ended
March 31,
 
   
2014
   
2013
 
Net loss
  $
(518,214
)   $ (407,466 )
                 
Weighted average shares outstanding - basic
    42,746,480       42,198,093  
Dilutive effect of stock options and warrants
            -  
Weighted average shares outstanding - diluted
    42,746,480       42,198,093  
                 
Net loss per share - basic and diluted
  $ (0.01 )   $ (0.01 )