Bonds.com Group, Inc.

Note 12 - Earnings (Loss) Per Share

Basic loss per share is computed by dividing loss available to common stockholders by the weighted-average number of common shares outstanding for the period.  Diluted loss per share considers the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that shared in the earnings of the entity.  No diluted loss per share has computed since the effect of any potentially dilutive securities would be antidilutive.  Potentially dilutive securities excluded from the calculation of weighted average common shares outstanding at December 31, 2013 and 2012, include i) 1,254,825 and 1,179,160 respectively, of both common stock and preferred series A warrants; ii) 679,621 and 584,009, respectively, of common stock underlying stock options; iii) 0 and 19,523 respectively, issuable under convertible note payable and iv) 1,406,355 and 1,243,969 respectively, of shares issuable under preferred stock.  All of these potentially dilutive securities have the ability to be converted to common stock. Dividends related to convertible preferred stock have been excluded from the calculation of diluted loss per share.