NOTE 13 – NET LOSS PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding. Diluted income per share is determined by dividing the net income by the sum of (1) the weighted average number of common shares outstanding and (2) if not anti-dilutive, the effect of outstanding stock awards determined utilizing the treasury stock method.

The dilutive effect of the outstanding stock awards for the three months ended September 30, 2014 was 4,437,737. Stock awards to purchase 6,500,568 shares of our Common Stock were excluded from the calculation of diluted income per share for the three months ended September 30, 2014 because their inclusion would have been anti-dilutive. There was no dilutive effect for the outstanding awards for the nine months ended September 30, 2014, as we reported a net loss for that period. However, if the Company had net income for the nine months ended September 30, 2014, the potentially dilutive securities would have been 4,653,452.

There was no dilutive effect for the outstanding awards for the three and nine months ended September 30, 2013, respectively, as we reported a net loss for both periods. However, if the Company had net income for the three months ended September 30, 2013, the potentially dilutive securities would have been 3,465,215. If the Company had net income for the nine months ended September 30, 2013, the potentially dilutive securities would have been 2,693,915.

Total outstanding potentially dilutive securities were comprised of the following: