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2. Income (Loss) Per Common Share
 3 Months Ended
Mar. 31, 2014
Net loss per share of common stock:  
Income (Loss) Per Common Share

Basic earnings per share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period.  Diluted earnings per share is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including warrants to purchase the Company's common stock and convertible preferred stock.  Management has determined that the calculation of diluted earnings per share for the three month periods ended March 31, 2014 and March 31, 2013, is not applicable since any additions to outstanding shares related to common stock equivalents would be anti-dilutive.

 

As of March 31, 2014 and 2013, the potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows:

 

    3/31/2014     3/31/2013  
Warrants     2,364,407       1,934,667  
Convertible preferred stock     1,751,005       1,751,005  
Total possible dilution     4,115,412       3,685,672