97053044

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97053044

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97053044

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97053044

Q2 NFBH NETFABRIC HOLDINGS, INC false Smaller Reporting Company 2011 10-Q 2011-06-30 0001083220 --12-31

60000

-43490

26308

<div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"> NOTE 2.  BASIS OF PRESENTATION</div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">The accompanying unaudited condensed interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"), except for the condensed consolidated balance sheet as of December 31, 2010, which was derived from audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been omitted pursuant to such rules and regulations. However the Company believes that the disclosures are adequate to make the information presented not misleading. The financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company's financial position and results of operations.</div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">The operating results for the three and six months ended June 30, 2011 and 2010 are not necessarily indicative of the results to be expected for any other interim period or any future year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company's December 31, 2010 consolidated financial statements, including the notes thereto, which are included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2010 filed on March 3, 2011.</div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"> Use of Estimates</div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition and revenues and expenses for the period then ended. Actual results may differ significantly from those estimates.</div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> Fair Value of Financial Instruments</div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">The carrying amounts reported in the balance sheet for cash and accounts payable and accrued expenses approximate their fair market value based on the short-term maturity of these instruments.</div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"> Earnings (Loss) Per Share</div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">The Company calculates earnings (loss) basic earnings (loss) per share by dividing the net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding during the period plus the effects of any dilutive securities. Diluted earnings (loss) per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. The Company's potentially dilutive securities include common shares which may be issued upon exercise of its stock options or exercise of warrants.</div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">The following table sets forth the computation of basic and diluted net income (loss) per common share for the periods indicated:</div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div> <div align="left"> <table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom" colspan="6" nowrap="nowrap"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"> Three Months Ended June 30,</div> </td> <td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap">  </td> <td valign="bottom" align="left">  </td> <td style="TEXT-ALIGN: center" valign="bottom" colspan="6" nowrap="nowrap"> <div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"> Six Months Ended June 30,</div> </td> <td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="PADDING-BOTTOM: 2px" valign="bottom"> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom">  </td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2" nowrap="nowrap"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"> 2011</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" nowrap="nowrap">  </td> <td style="PADDING-BOTTOM: 2px" valign="bottom">  </td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2" nowrap="nowrap"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"> 2010</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" nowrap="nowrap">  </td> <td style="PADDING-BOTTOM: 2px" valign="bottom">  </td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2" nowrap="nowrap"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"> 2011</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" nowrap="nowrap">  </td> <td style="PADDING-BOTTOM: 2px" valign="bottom">  </td> <td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2" nowrap="nowrap"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"> 2010</div> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="TEXT-ALIGN: center" valign="bottom" colspan="14" nowrap="nowrap"> (Unaudited)</td> <td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" colspan="2" nowrap="nowrap"> </td> <td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom" colspan="2" nowrap="nowrap"> </td> <td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom" colspan="2" nowrap="nowrap"> </td> <td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom" colspan="2" nowrap="nowrap"> </td> <td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap">  </td> </tr> <tr bgcolor="#CCFFCC"> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="52%" align="left"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Net income ( loss)</div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">40,270</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">(72,987</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap">)</td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">26,308</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">(106,100</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap">)</td> </tr> <tr bgcolor="white"> <td valign="bottom" width="52%"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> </tr> <tr bgcolor="#CCFFCC"> <td style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" valign="bottom" width="52%"> <div style="TEXT-ALIGN: left; TEXT-INDENT: -9pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt"> Weighted average of shares outstanding to calculate basic net income (loss) per share</div> </td> <td valign="bottom" width="1%" align="right"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> 97,053,044</td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%" align="right"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> 97,053,044</td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%" align="right"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> 97,053,044</td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%" align="right"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> 97,053,044</td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> </tr> <tr bgcolor="white"> <td valign="bottom" width="52%"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> </tr> <tr bgcolor="#CCFFCC"> <td style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" valign="bottom" width="52%"> <div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"> Effect of potentially dilutive securities-warrants</div> </td> <td valign="bottom" width="1%" align="right"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> 530,884</td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> -</td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%" align="right"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> 536,092</td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%"> -</td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> </tr> <tr bgcolor="white"> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="52%">  </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%">  </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%"> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%">  </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%"> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%">  </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%"> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%">  </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td> <td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%"> </td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td> </tr> <tr bgcolor="#CCFFCC"> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px; TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" valign="bottom" width="52%"> <div style="TEXT-ALIGN: left; TEXT-INDENT: -9pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt"> Weighted average of shares outstanding to calculate diluted net income (loss) per share</div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"> 97,583,928</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"> 97,053,044</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"> 97,589,136</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"> 97,053,044</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td> </tr> <tr bgcolor="white"> <td valign="bottom" width="52%"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> </tr> <tr bgcolor="#CCFFCC"> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="52%" align="left"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Basic net income (loss) per share</div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"> 0.00</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"> (0.00</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap">)</td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"> 0.00</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"> (0.00</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap">)</td> </tr> <tr bgcolor="white"> <td valign="bottom" width="52%"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> <td valign="bottom" width="1%"> </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td> <td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> </tr> <tr bgcolor="#CCFFCC"> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="52%" align="left"> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Diluted net income (loss) per share</div> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"> 0.00</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"> (0.00</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap">)</td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"> 0.00</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td> <td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td> <td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"> (0.00</td> <td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap">)</td> </tr> </table> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">Diluted income (loss) per share for the three and six months ended June 30, 2011 and 2010  exclude potentially issuable common shares of approximately  854,282 and 6,506,867, respectively, primarily related to the Company's outstanding stock options and warrants, because the assumed issuance of such potential common shares is antidilutive.</div> </div>

0.00

-69798

<div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> NOTE 3. RECENT ACCOUNTING PRONOUNCEMENTS</div> <div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">The Company has adopted all recently issued accounting pronouncements. The adoption of the accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the financial position or results of operations of the Company.</div> </div>

26308

60000

0.00

-33692

97053044

-43490

33692

97589136

-72987

0.00

-72987

0.00

-72987

97053044

72987

97053044

60000

40270

0.00

40270

60000

0.00

-19730

97053044

19730

97583928

0001083220 2011-04-01 2011-06-30 0001083220 2010-04-01 2010-06-30 0001083220 2011-01-01 2011-06-30 0001083220 2010-01-01 2010-06-30 0001083220 2010-12-31 0001083220 2009-12-31 0001083220 2011-06-30 0001083220 2010-06-30 0001083220 2011-08-05 shares iso4217:USD iso4217:USD shares