Quarterly report pursuant to Section 13 or 15(d)

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2014

Basic Earnings (loss) per share is calculated by dividing the net income (loss) by the weighted average number of outstanding common shares during the period. Diluted per share data includes the dilutive effects of options, warrants and convertible securities. Potential shares of 3,700,000 and 7,207,500 at September 30, 2014 and September 30, 2013, respectively, consisted of options and warrants. Computations of basic and diluted weighted average common shares outstanding are as follows:

	Nine Months Ended September 30,				Three Months Ended September 30,
	2014		2013		2014		2013

Weighted-average common shares outstanding – basic		25,396,573		25,387,348		24,942,874		25,792,387
Dilutive effect of options and warrants		2,214,406		2,075,010		—		-
Weighted-average common shares outstanding – diluted		27,610,979		27,462,358		24,942,874		25,792,387
Options and Warrants excluded from the computation of diluted income (loss) per share because the effect of inclusion would have been anti-dilutive		1,485,594		5,132,490		3,700,000		7,207,500