Earnings per share

3 Months Ended

Mar. 31, 2012

Note 3 - Earnings per share

Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding. Diluted net income per share includes the effect of the potential shares outstanding, including dilutive warrants, stock options outstanding, using the treasury stock method.

The following table reconciles the components of the basic net income per share calculations to diluted net income per share:

		Three Months Ended March 31,
		2012			2011

Net earnings/(loss)	$	(1,773,138	)	$	416,025
Weighted average common shares outstanding assuming no exercise of outstanding warrants and options		39,903,651			26,592,500
Dilutive warrants and stock options using the treasury stock method.		-			-
Dilutive common shares outstanding		39,903,651			26,592,500

Basic earnings/(loss) per common share	$	(0.04	)	$	0.02
Diluted earnings/(loss) per common share	$	(0.04	)	$	0.02

Number of anti-dilutive warrants (2,470,000) and stock options (1,976,000) not included in the calculation of dilutive earnings/(loss) per share		4,446,000			-

- Definition

The entire disclosure for earnings per share.

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KRANEM CORP 10-Q