v2.4.0.6
Earnings Per Share
 3 Months Ended
Mar. 31, 2012
Earnings Per Share [Abstract]  
Earnings Per Share

4. Earnings Per Share 

Basic earnings per common share are computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the reporting period.  Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock options, unvested restricted stock, and warrants) were exercised or converted into common stock or resulted in the issuance of common stock (net of any assumed repurchases) that then shared in the earnings of the Company, if any. This is computed by dividing net earnings by the combination of dilutive common share equivalents, which is comprised of shares issuable under outstanding warrants and the Company’s share-based compensation plans, and the weighted average number of common shares outstanding during the reporting period. Since the Company is in a net loss position, all common stock equivalents would be considered to be anti-dilutive and are, therefore, not included in the determination of diluted earnings per share. Accordingly, basic and diluted loss per share are the same. The financial statements for all prior periods have been retroactively adjusted to reflect the May 19, 2011 one-for-ten reverse stock split of the Company’s common stock.

The following table provides the components of the calculations of basic and diluted earnings per share:

 

 

 

Three Months Ended

 

 

March 31, 2012

 

March 31, 2011

Numerator:

 

 

 

 

Net loss

$

(6,583,102)

 

$

(7,243,200)

Denominator:

 

 

 

 

Weighted average number of common shares outstanding

23,437,600 

 

13,225,095 

 

 

 

 

 

The potential dilutive common shares are summarized as follows:

 

At March 31,

 

2012

 

2011

Stock options outstanding

 

1,948,124 

 

442,585 

Unvested restricted stock

 

280,771 

 

409,326 

Common stock warrants  (1)

 

9,421,008 

 

57,143 

Number of dilutive potential common shares

 

11,649,903 

 

909,054 

 

(1)

On May 31, 2011, the Company granted 7,128,563 warrants as part of an underwritten public offering.  As a result of the March 28 and 29, 2012 public offerings described in Note 6 below, the number of warrants increased to 9,421,008. On May 4, 2007, the Company granted 57,143 warrants (as adjusted for the reverse stock split) to the shareholders of General Hydrogen as part of the acquisition of that company.  Those warrants expired on May 4, 2011.