Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2012

7. Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of the common shares issuable upon the exercise of stock options and warrants. Potentially dilutive common shares are excluded from the calculation if their effect is antidilutive. At March 31, 2012 there were options and warrants to purchase 7,807,500 and 1,130,907 shares of common stock, respectively, outstanding which could potentially dilute future net income (loss) per share. At March 31, 2011 there were warrants to purchase 1,044,584 shares of common stock outstanding which could potentially dilute future net income (loss) per share.

Basic and diluted net loss per share was calculated for the three months ending March 31, 2012 and 2011 as follows:

	2012			2011
Net loss	$	(463,569	)	$	(249,621	)

Weighted average shares outstanding - basic		39,843,839			31,764,777
Dilutive effect of stock options and warrants		-			-
Weighted average shares outstanding - diluted		39,843,839			31,764,777

Net loss per share - basic and diluted	$	(0.01	)	$	(0.01	)

- Definition

The entire disclosure for earnings per share.

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