Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Earnings (Loss) Per Share

Note 6 - Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2017

6 .	Earnings (Loss) Per Share

Basic earnings (loss) per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares and, except for periods with a loss from operations, participating securities outstanding during the period. Diluted earnings (loss) per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that

may

be issued by the Company include convertible debt, convertible preferred stock, options and warrants.

The following table sets forth the reconciliation of the

weighted average number of common shares outstanding used to compute basic and diluted earnings (loss) per share for the

three

-month and

nine

-month periods ended

September 30, 2017

and

2016:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Weighted average shares outstanding, basic		162,006,646		155,481,278		161,437,276		155,390,911
Dilutive shares related to warrants		—		—		4,277,197		—
Unvested restricted stock		—		—		200,000		—
Weighted average shares outstanding, diluted		162,006,646		155,481,278		165,914,473		155,390,911

Diluted earnings (loss) per common share for the

nine

-month periods ended

September 30, 2017

and

2016

excludes the effects of

15.1

million and

14.5

million common share equivalents, respectively, since such inclusion would be anti-dilutive. The excluded shares consist of common shares issuable upon exercise of outstanding stock options and warrants, and upon the conversion of convertible debt and convertible preferred stock.

The Company

’s unvested stock awards contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid (referred to as “participating securities”). Therefore, the unvested stock awards are required to be included in the number of shares outstanding for both basic and diluted earnings per share calculations. However, due to our loss from continuing operations,

200,000

and

257,000

shares of unvested restricted stock for the

nine

-month periods ended

September 30, 2017

and

2016,

respectively, were excluded in determining basic and diluted loss per share from continuing operations because such inclusion would be anti-dilutive.