NET INCOME (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2016

Note 5:

net income (loss) per share

Basic income (loss) per common share is computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted income per common share is computed similar to basic income per common share except that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock.

Income (loss) per-share amounts for all periods have been retroactively adjusted to reflect the Company’s 1-for-12 reverse stock split, which was effective September 16, 2016.

The following table sets forth the computation of income (loss) per share:

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

Net income (loss)	$	(2,102,962)	$	28,503,325	$	(878,561)	$	(32,413,693)
Less: Non cash income from changes in fair value of derivative liabilities		-		-		(2,856,000)		-
Net income (loss) - diluted		(2,102,962)		28,503,325		(3,734,561)		(32,413,693)

Weighted average shares outstanding - basic		7,281,000		4,048,750		6,370,000		3,054,297
Common stock warrants		-		2,663,333		565,000		-
Common stock options		-		33,333		-		-
Weighted average shares outstanding - diluted		7,281,000		6,745,416		6,935,000		3,054,297

Net income (loss) per share data:
Basic	$	(0.29)	$	7.04	$	(0.14)	$	(10.61)
Diluted	$	(0.29)	$	4.23	$	(0.54)	$	(10.61)

The following securities, rounded to the thousand, were not included in the diluted net loss per share calculation because their effect was anti-dilutive for the periods presented:

	Nine Months Ended September 30,
	2016		2015
Common stock options		432,000		39,000
Common stock warrants - equity treatment		5,054,000		211,000
Common stock warrants - liability treatment		6,000		4,750,000
Potentially dilutive securities		5,492,000		5,000,000