Basic and Diluted Earnings per Share

9 Months Ended

Sep. 30, 2011

(4)	Basic and Diluted Earnings per Share

Basic and diluted net earnings per common share are computed as follows:

	Three Months Ended September 30,
	2011						2010
					$ per						$ per
	Income		Shares		Share		Income		Shares		Share

BASIC EARNINGS PER SHARE
Net income	$	112,818		13,686,977	$	0.01	$	465,682		13,415,580	$	0.03
EFFECT OF DILUTIVE SECURITIES
Unvested restricted stock		-		850,719		-		-		813,658		-
Unsecured convertible note		28,323		377,640		-		-		-
DILUTED EARNINGS PER SHARE	$	141,141		14,915,336	$	0.01	$	465,682		14,229,238	$	0.03

	Nine Months Ended September 30,
	2011							2010
					$ per							$ per
	Income		Shares		Share			Income		Shares		Share

BASIC EARNINGS PER SHARE
Net income	$	3,097,241		13,514,323	$	0.23		$	609,916		13,252,624	$	0.05
EFFECT OF DILUTIVE SECURITIES
Unvested restricted stock		-		965,243		(0.02	)		-		830,656		(0.01	)
Unsecured convertible note		84,695		377,640		-			-		-		-
DILUTED EARNINGS PER SHARE	$	3,181,936		14,857,206	$	0.21		$	609,916		14,083,280	$	0.04

624,672 unvested shares of restricted stock and 377,640 shares associated with convertible notes that were oustanding at September 30, 2011 were included in the weighted average dilutive earnings per share calculation for the three and nine months ended September 30, 2011. While the convertible note was included in dilutive earnings per share, it did not impact the per share calculation.

87,167 unvested restricted stock units and options to purchase 700,000 shares of common stock that were outstanding at September 30, 2010 were not included in the computation of diluted net income per common share for the three and nine months ended September 30, 2010 because the restricted stock units vested only if the closing price per share of the Company’s common stock was at least $3.00 or expired out of the money. Additionally, for the three and nine months ended September 30, 2010, all convertible notes were omitted from the earnings per share calculation because the effect of conversion would be anti-dilutive.