EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2014

NOTE C — EARNINGS (LOSS) PER SHARE

Basic earnings per common share are based upon the weighted average number of shares of common stock (“common shares”) outstanding. Diluted earnings per share are based upon the weighted average number of common shares outstanding and, when dilutive, common shares issuable for stock options, warrants, and convertible securities. All earnings per common share have been adjusted for the 5% stock dividend paid on May 14, 2013, to shareholders of record as of April 30, 2013.

The following is a reconciliation of net income (loss) and weighted average common shares outstanding for purposes of calculating basic and diluted earnings per share:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	(Unaudited)						(Unaudited)
	2014			2013			2014			2013
Basic:
Numerator:
Net loss	$	(4,009,477	)	$	(3,951,687	)	$	(3,761,777	)	$	(1,604,244	)

Denominator:
Basic - weighted average common shares outstanding	21,957,167			21,832,831			21,956,804			21,805,692

Basic EPS	$	(0.18	)	$	(0.18	)	$	(0.17	)	$	(0.07	)

Diluted:
Numerator:

Net loss	$	(4,009,477	)	$	(3,951,687	)	$	(3,761,777	)	$	(1,604,244	)

Denominator:
Weighted average common shares outstanding	21,957,167			21,832,831			21,956,804			21,805,692
Effect of Dilutive Securities:
Stock options	—			—			—			—
	21,957,167			21,832,831			21,956,804			21,805,692

Diluted EPS	$	(0.18	)	$	(0.18	)	$	(0.17	)	$	(0.07	)

- Definition

The entire disclosure for earnings per share.

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