Note 4 - Earnings Per Share (EPS)

3 Months Ended

Mar. 31, 2012

4. EARNINGS PER SHARE (“EPS”)

The Company’s basic EPS is calculated using net income available to common shareholders and the weighted-average number of shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuance of common stock, such as stock issuable pursuant to the exercise of stock options and warrants and the assumed conversion of convertible notes and preferred stock.

The reconciliation of the numerator of the basic and diluted EPS calculations, due to the inclusion of preferred stock dividends and accretion was as follows for the following three month periods ended March 31, 2012 and 2011:

	Three Months ended March 31,
	2012			2011

Basic Numerator:

Income available to common stockholders	$	363,498		$	240,071

Basic Denominator:		78,155,413			78,155,413
Per Share Amount	$	0.00	*	$	0.00	*

* Represents less than $0.01

The following table summarizes the potential weighted average shares of common stock that were included in the diluted per share calculation for three months ended March 31, 2012 and March 31, 2011.

	Three Months Ended March 31,
	2012		2011

Stock Options		759		590,400
Potentially dilutive securities		759		590,400

	Three Months ended March 31,
	2012			2011

Dilutive Numerator:

Income available to common stockholders	$	363,498		$	240,071

Dilutive Denominator:		78,156,172			78,745,813
Per Share Amount	$	0.00	*	$	0.00	*

* Represents less than $0.01

Items excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares:

	Three Months Ended March 31,
	2012		2011

Stock options		4,588,560		3,039,258
Warrants		8,250,000		9,986,615

Total		12,838,560		13,025,873

- Definition

The entire disclosure for earnings per share.

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