Basic and Diluted Average Shares

9 Months Ended

Sep. 30, 2016

Note 5 - Basic and Diluted Average Shares

A reconciliation of basic and diluted weighted average common shares for the three and nine months ended September 30, 2016 and 2015 is as follows:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015

Basic weighted average shares		12,358,466		12,295,446		12,327,753		12,267,475
Effect of potential dilutive securities		-		-		-		-
Diluted weighted average shares		12,358,466		12,295,446		12,327,753		12,267,475

For the three and nine months ended September 30, 2016 and 2015, options to purchase 5,015,000 and 5,030,000 shares of common stock, respectively, were not added to the diluted average shares because inclusion of such shares would be antidilutive. The option held by Elemetal, LLC (“Elemetal”) to purchase up to 5,000,000 shares of our common stock at an exercise price of $15 per share, expired on October 25, 2016. For the three and nine months ended September 30, 2016, there were 31,010 unvested Restricted Stock Units (“RSUs”), not added to the diluted average shares because inclusion of such shares would be antidilutive. For the three and nine months ended September 30, 2015, there were 17,500 unvested Restricted Stock Units (“RSUs”), not added to the diluted average shares because inclusion of such shares would be antidilutive.