Annual report pursuant to Section 13 and 15(d)

Note 6 - Earnings Per Share

Note 6 - Earnings Per Share

12 Months Ended

Dec. 31, 2017

6 .	Earnings 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

years ended

December 31, 2017,

2016

and

2015:

	Years Ended December 31,
	2017		2016		2015
Weighted average shares outstanding, basic		161,592,569		155,422,384		151,180,222
Dilutive shares related to warrants		4,273,889		—		—
Unvested restricted stock		150,000		—		—
Weighted average shares outstanding, diluted		166,016,458		155,422,384		151,180,222

Diluted earnings

(loss) per common share for the years ended

December 31, 2017,

2016

and

2015

excludes the effects of

14.5

million,

14.1

million and

14.6

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,

150,000,

207,000

and

361,000

shares of unvested restricted stock for the years ended

December 31, 2017,

2016

and

2015,

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