NOTE 14 – 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 six months ended June 30, 2012, outstanding warrants to purchase an aggregate of 2,175,000 shares of stock were excluded from the computation of dilutive earnings per share because the inclusion would have been anti-dilutive.