Quarterly report pursuant to Section 13 or 15(d)

Earnings (Loss) Per Share

Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2011

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 continuing 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 nine-month periods ended September 30, 2011 and 2010:

	Basic and Diluted Earnings Per Share
	Three Months Ended
	September 30, 2011			September 30, 2010
Outstanding shares		95,110,527			82,446,872
Effect of weighting changes in outstanding shares		(479,792	)		(62,800	)
Unvested restricted stock		(1,560,500	)		(1,779,000	)
Adjusted shares		93,070,235			80,605,072

	Basic and Diluted Earnings Per Share
	Nine Months Ended
	September 30, 2011			September 30, 2010
Outstanding shares		95,110,527			82,446,872
Effect of weighting changes in outstanding shares		(4,139,877	)		(518,570	)
Unvested restricted stock		(1,560,500	)		(1,779,000	)
Adjusted shares		89,410,150			80,149,302

Diluted earnings (loss) per common share for the three-month and nine-month periods ended September 30, 2011 and 2010 excludes the effects of 54,382,654 and 60,277,500 common share equivalents, respectively, due to the loss from continuing operations. 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 continuing operations. Due to our net loss from continuing operations, 1,560,500 and 1,779,000 shares of unvested restricted stock were excluded in determining basic and diluted loss per share for the three-month and nine-month periods ended September 30, 2011 and 2010, respectively.