EXHIBIT 11
EARNINGS PER SHARE
Basic earnings per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding for the period and, if there are dilutive securities, diluted earnings per share is computed by including common stock equivalents outstanding for the period in the denominator.
Common stock equivalents include shares issuable upon the exercise of stock options or warrants, net of shares assumed to have been purchased with the proceeds, using the treasury stock method.
Three Months | Six Months | ||||||||||||
June 30, | June 30, | ||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||
| Basic shares used in the calculation of earnings per share | 36,879,445 | 36,616,764 | 36,871,460 | 36,501,117 | |||||||||
| Effect of dilutive securities: | |||||||||||||
| Stock options | - | - | - | - | |||||||||
| Stock warrants | - | - | - | - | |||||||||
| Diluted shares used in the calculation of earnings per share | 36,879,445 | 36,616,764 | 36,871,460 | 36,501,117 | |||||||||
| Net loss per share - basic and diluted | $ | (0.07 | ) | $ | (0.03 | ) | $ | (0.11 | ) | $ | (0.01 | ) | |
The following table summarizes the number of shares of common stock for securities that were not included in the calculation of diluted net loss per share because such shares are antidilutive:
Three Months | Six Months | ||||||||||||
June 30, | June 30, | ||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||
| Stock options | 5,446,584 | 4,914,011 | 5,446,584 | 4,914,011 | |||||||||
| Stock warrants | 1,003,311 | 1,003,311 | 1,003,311 | 1,003,311 | |||||||||
| Convertible Revolving Promissory Note | 1,427,257 | 54,557 | 1,427,257 | 54,557 | |||||||||
| Convertible Series A Preferred Stock | 515,000 | 515,000 | 515,000 | 515,000 | |||||||||
| Convertible Series B Preferred Stock | 572,500 | 612,000 | 572,500 | 612,000 | |||||||||