Cellectar Biosciences, Inc. General form of registration statement for all companies including face-amount certificate companies

General form of registration statement for all companies including face-amount certificate companies

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE

3 Months Ended

9 Months Ended

12 Months Ended

Mar. 31, 2011

Sep. 30, 2011

Dec. 31, 2010

NET INCOME (LOSS) PER SHARE

6.	NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income attributable to common stockholders by the sum of weighted average number of shares of common stock and the dilutive potential common stock equivalents then outstanding. Potential common stock equivalents consist of stock options, warrants and convertible preferred stock and accumulated dividends. Since the Company has a net loss for the three months ended March 31, 2011, the inclusion of common stock equivalents in the computation would be antidilutive. Accordingly, basic and diluted net loss per share are the same for the three months ended March 31, 20011.

The following table sets forth the shares and net income used in the diluted earnings per share computation for the three months ended March 31, 2010:

Numerator:

Net income available to common stockholders used in basic earnings per share calculation	$	4,693,487

Derivative gain recorded on dilutive warrants		(2,340,515	)
Dividends on convertible preferred stock		656,635

Net income available to common stockholders used in diluted earnings per share calculation	$	3,009,607

Denominator:

Weighted average shares of common stock used in the computation of basic earnings per share		522,350

Dilutive effect of stock options		26,430
Dilutive effect of warrants to purchase common stock		79,646
Dilutive effect of convertible preferred stock		253,435

Shares used in computation of diluted earnings per share		881,861

The following potentially dilutive securities have been excluded from the computation of diluted net income (loss) per share since their inclusion would be antidilutive:

	Three Months Ended March 31,
	2011		2010

Stock options		49,227		3,970
Warrants		315,170		43,349

13. NET LOSS PER SHARE

Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss, as adjusted, by the sum of the weighted average number of shares of common stock and the dilutive potential common stock equivalents then outstanding. Potential common stock equivalents consist of stock options and convertible debt. Since there is a net loss attributable to common stockholders for the nine months ended September 30, 2011 and 2010 and the years ended December 31, 2010 and 2009, the inclusion of common stock equivalents in the computation for those periods would be antidilutive. Accordingly, basic and diluted net loss per share is the same for all periods presented.

The following potentially dilutive securities have been excluded from the computation of diluted net loss per share since their inclusion would be antidilutive:

	Nine Months Ended September 30, (unaudited)				Twelve Months Ended December 31,				Cumulative Development- Stage Period from November 7, 2002 (inception) through December 31,
	Consolidated 2011		2010		2010		2009		2010
Convertible debt		—		3,547,198		3,646,370		—		3,646,370
Warrants		7,327,322		—		—		—		—
Stock options		3,632,638		775,853		769,189		991,736		769,189

9. NET INCOME (LOSS) PER SHARE

Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net loss attributable to common stockholders, as adjusted, by the sum of the weighted average number of shares of common stock and the dilutive potential common stock equivalents then outstanding. Potential common stock equivalents consist of stock options, warrants and convertible preferred stock and accumulated dividends. Since the Company has a net loss attributable to common stockholders for the years ended December 31, 2010 and 2009, the inclusion of common stock equivalents in the computation for those periods would be antidilutive. Accordingly, basic and diluted net loss per share is the same for the periods presented.

The following potentially dilutive securities have been excluded from the computation of diluted net income (loss) per share since their inclusion would be antidilutive:

	Year Ended December 31,
	2010		2009
Stock options		50,074		60,260
Warrants		356,925		232,164
Conversion of preferred stock		2,042,108		329,451	(1)

(1) Includes shares of common stock that may become issuable upon conversion of preferred stock dividends accumulated at the respective date.