Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2012

Summary of Significant Accounting Policies [Abstract]

Reconciliation of Numerators and Denominators of Basic and Diluted Loss per Share Calculation

The following table reconciles the numerator and denominator for the calculation:

	For The Three Months						For The Nine Months
	Ended September 30,						Ended September 30,
	2012			2011			2012			2011
Basic and diluted loss per share:
Numerator:
Net (loss) income	$	(632,957	)	$	102,645		$	(1,402,026	)	$	(454,627	)
Cumulative preferred stock dividends		-			(383,122	)		-			(1,136,877	)
Numerator for basic and diluted loss per share:
Net loss attributable to common stockholders	$	(632,957	)	$	(280,477	)	$	(1,402,026	)	$	(1,591,504	)

Denominator:
Weighted average common stock shares outstanding		22,086,641			22,089,888			22,086,641			21,528,021
Weighted average warrants outstanding with an exercise price of $0.01 or less		258,188			152,587			225,478			113,423
Weighted average basic and diluted shares outstanding		22,344,829			22,242,475			22,312,119			21,641,444

Loss per basic and diluted share:
Net (loss) income	$	(0.03	)	$	0.01		$	(0.06	)	$	(0.02	)
Cumulative preferred stock dividends		-			(0.02	)		-			(0.05	)
Net loss attributable to common stockholders	$	(0.03	)	$	(0.01	)	$	(0.06	)	$	(0.07	)

Securities Excluded From Calculation of Weighted Average Dilutive Common Shares

The following securities are excluded from the calculation of weighted average dilutive common shares, because their inclusion would have been antidilutive:

	As of
	September 30,
	2012		2011
Employee stock options		780,500		820,333
Warrants		1,059,327		1,047,883
Convertible preferred stock		-		9,500,000
Unvested restricted stock		-		12,987
Total potentially dilutive shares		1,839,827		11,381,203

Lightyear Network Solutions, Inc. 10-Q