NOTE 5 - EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2011

NOTE 5 – EARNINGS PER SHARE

Earnings per share is based upon the weighted average number of shares of common stock and common stock equivalents outstanding, net of common stock held in treasury, as follows (in thousands except share and per share data):

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2011		2010			2011		2010

Net income (loss) attributable to Radnet, Inc.'s common stockholders	$	39	$	(285	)	$	2,684	$	(16,152	)

BASIC INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the year		37,426,460		36,979,725			37,347,946		36,755,781
Basic income (loss) per share attributable to RadNet, Inc.'s common stockholders	$	0.00	$	(0.01	)	$	0.07	$	(0.44	)
DILUTED INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the year		37,426,460		36,979,725			37,347,946		36,755,781
Add additional shares issuable upon exercise of stock options and warrants		1,043,513		-			1,731,052		-
Weighted average number of common shares used in calculating diluted income (loss) per share		38,469,973		36,979,725			39,078,998		36,755,781
Diluted income (loss) per share attributable to RadNet, Inc.'s common stockholders	$	0.00	$	(0.01	)	$	0.07	$	(0.44	)

For the three and nine months ended September 30, 2010, we excluded all options and warrants in the calculation of diluted loss per share because their effect is antidilutive. For the three and nine months ended September 30, 2011, 3,530,000 and 2,370,000 options and warrants, respectively, were excluded from the calculation of diluted income per share as their effect is antidilutive.