NOTE 13 LOSS PER SHARE

As previously discussed in Note 11, the Company completed a rights issue during December 2012. As per ASC 260-10-55-13 to ASC 260-10-55-14, a rights issue in which the exercise price at issuance is less than the fair value of the stock contains a bonus element that is somewhat similar to a stock dividend. If a rights issue contains a bonus element and the rights issue is offered to all existing shareholders, basic and diluted earnings per share shall be adjusted retroactively for the bonus element for all periods presented. Since the Company offered the right to all existing shareholders at a 50% discount, a bonus element was present. The Company determined the bonus element to be an additional 10.6 million shares which would be added to the denominator that was used in computing basic and diluted earnings per share in 2011 and 2010. The calculation of the bonus element gave rise to the following adjustments to the weighted average number of common shares and loss per common share for the years ended December 31, 2011 and 2010:

	Year Ended December 31,

	2011			2010
	(in thousands, except per share)
Weighted average number of common shares, as reported		137,046			121,987
Adjustment		10,646			10,646

Weighted average number of common shares, as adjusted		147,692			132,633

Loss per common share, as reported	$	0.45		$	0.27
Adjustment		(0.03	)		(0.02	)

Loss per common share, as adjusted	$	0.42		$	0.25

The computations for basic loss per common share are as follows:

	Year Ended December 31,

	2012		2011		2010
	(in thousands, except per share)
Net loss for the year	$	66,654	$	61,872	$	33,091
Weighted average number of common shares		261,223		147,692		132,633

Loss per common share	$	0.26	$	0.42	$	0.25