Quarterly report pursuant to Section 13 or 15(d)

Earnings (Loss) Per Share

 v2.3.0.11
Earnings (Loss) Per Share
 6 Months Ended
Jun. 30, 2011
Earnings (Loss) Per Share
5.
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 securities, options and warrants.

The following table sets forth the reconciliation of the weighted average number of common shares outstanding to those used to compute basic and diluted earnings (loss) per share for the three-month and six-month periods ended June 30, 2011 and 2010:

   
Three Months Ended
June 30, 2011
    
Three Months Ended
June 30, 2010
  
   
Basic
Earnings
Per Share
    
Diluted
Earnings
Per Share
    
Basic
Earnings
Per Share
    
Diluted
Earnings
Per Share
  
Outstanding shares
     94,537,936       94,537,936       82,151,043       82,151,043  
Effect of weighting changes in outstanding shares
     (3,191,347 )     (3,191,347 )     (171,966 )     (171,966 )
Unvested restricted stock
     (1,686,500 )     (1,686,500 )     (1,719,000 )     (1,719,000 )
Adjusted shares
     89,660,089       89,660,089       80,260,077       80,260,077  

   
Six Months Ended
June 30, 2011
    
Six Months Ended
June 30, 2010
  
   
Basic
Earnings
Per Share
    
Diluted
Earnings
Per Share
    
Basic
Earnings
Per Share
    
Diluted
Earnings
Per Share
  
Outstanding shares
     94,537,936       94,537,936       82,151,043       82,151,043  
Effect of weighting changes in outstanding shares
     (5,301,660 )     (5,301,660 )     (514,402 )     (514,402 )
Unvested restricted stock
     (1,686,500 )     (1,686,500 )     (1,719,000 )     (1,719,000 )
Adjusted shares
     87,549,776       87,549,776       79,917,641       79,917,641  


 
Earnings (loss) per common share for the three-month and six-month periods ended June 30, 2011 and 2010 excludes the effects of 54,739,358 and 60,242,500 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 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 included in the number of shares outstanding for both basic and diluted earnings per share calculations, except in the event of a net loss from operations.  Due to our net loss, 1,686,500 and 1,719,000 shares of unvested restricted stock were excluded in determining basic and diluted loss per share for the three-month and six-month periods ended June 30, 2011 and 2010, respectively.