NOTE 12 – NET (LOSS) PER SHARE

Basic earnings per share (EPS) is computed by dividing net (loss) by the weighted average number of common shares outstanding. The dilutive EPS adds the dilutive effect of stock options, warrants and other stock equivalents. During the three months ended March 31, 2012, outstanding warrants to purchase an aggregate of 1,487,500 shares of stock were excluded from the computation of dilutive earnings per share because the inclusion would have been anti-dilutive.