KRANEM CORP

CIK:0001309764|SEC Filings

Earnings/(Loss) per share

9 Months Ended

Sep. 30, 2012

Note 5 – Earnings/(Loss) per share

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

The following table reconciles the components of the basic net earnings/(loss) per share calculations to diluted net earnings/(loss) per share (amounts in thousands, except per share data):

		Three Months Ended September 30,				Nine Months Ended September 30,
		2012		2011		2012			2011

Net earnings/(loss)	$	117	$	323	$	(2,962	)	$	689

Weighted average common shares outstanding		6,954		39,889		6,772			24,595
Dilutive warrants and options		37,778		-		-			-
Weighted average dilutive common shares		44,732		39,889		6,772			24,595

Basic earnings/(loss) per common share	$	0.02	$	0.01	$	(0.44	)	$	0.03
Diluted earnings/(loss) per common share	$	0.00	$	0.01	$	(0.44	)	$	0.03

Anti-dilutive options and warrants outstanding totaling zero at September 30, 2012, and 1,701 at September 30, 2011, are excluded in the above calculations.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (USD $)	9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (USD $)	Sep. 30, 2012	Sep. 30, 2011
Cash flows from Operating Activities
Net Income/(Loss)	$ (2,962,227)	$ 688,737
Adjustments to reconcile net income/(loss) to net cash used in operating activities
Depreciation and amortization	581,193	152,525
Provision for doubtful receivables	998,744	0
Stock-based compensation	1,063,610	0
Other, net	5,151	222,799
Changes in operating assets and liabilities
Accounts receivable	(756,057)	(2,142,608)
Inventories	1,298	115,281
Accounts payable	(1,748,106)	(68,082)
Other, net	125,458	458,674
Net Cash Used in Operating Activities	(2,690,936)	(572,674)
Cash flows from Investing Activities
Investment in mutual fund units	0	(1,097,324)
Redemption of mutual fund units	0	1,234,392
Proceeds from sale of fixed assets	0	100,784
Expenditures on equipment	0	(21,945)
Acquisition of assets	0	(400,000)
Net Cash from Investing Activities	0	(184,093)
Cash flows from Financing Activities
Due to related parties	1,223,704	0
Net borrowings under credit facilities	161,670	0
Issuances of short-term loans	534,000	381,283
Repayment of short-term loan	(78,500)	0
Issuance of short-term loan - related party	150,000	0
Repayment of short-term loans - related party	(250,000)	0
Issuance of preferred shares	64,210	0
Net Cash from Financing Activities	1,805,084	381,283
Sub-total	(885,852)	(375,484)
Translation effect of exchange rates	881,147	(45,921)
Net change in cash and cash equivalents during the period	(4,705)	(421,405)
Cash and cash equivalents at the beginning of the period	420,012	545,374
Cash and cash equivalents at the end of the period	415,307	123,969
Non-Cash Investing and Financing Activities
Common shares issued for the acquisition of software from Investco	0	1,111,108
Conversion of Empire Capital note payable into preferred shares	256,233	0
Conversion of Asher Enterprises note payable into common shares	255,242	0
Common stock issued for accounts payable	60,000	0
Conversion of common stock to preferred stock	1,995,921	0
Net Cash Paid During the Period for
Interest	44,037	0
Income Taxes	$ 0	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2012	Dec. 31, 2011
Current Assets
Cash and cash equivalents	$ 415,307	$ 420,012
Accounts receivable, net of allowance for doubtful accounts of $998,744 and $0, respectively	9,352,601	9,595,288
Accounts receivable - related parties	0	2,267,584
Inventories	206,047	207,345
Other	1,320,222	1,237,372
Total Current Assets	11,294,177	13,727,601
Equipment, net	369,848	375,383
Intangible assets, net	3,915,248	4,420,902
Other	263,868	532,760
TOTAL ASSETS	15,843,141	19,056,646
Current Liabilities
Accounts payable	4,064,479	5,812,585
Accounts payable - related parties	66,504	1,110,383
Credit facilities	774,584	612,914
Short-term notes	2,248,900	1,700,000
Short-term notes - related parties	185,000	285,000
Other	1,118,064	1,312,029
Total Current Liabilities	8,457,531	10,832,911
Long-term note	0	500,000
Other	490,988	358,550
TOTAL LIABILITIES	8,948,519	11,691,461
STOCKHOLDERS' EQUITY
Preferred stock, no par value, 10,000,000 shares authorized, 428,034 and 0 shares issued and outstanding, respectively	2,068,374	0
Common stock, no par value, 200,000,000 shares authorized, 7,720,519 and 39,888,750 shares issued and outstanding, respectively	372,252	1,583,112
Additional paid-in-capital	1,441,150	126,350
Common stock issuable	1,220,000	1,220,000
Retained earnings	2,367,379	5,319,043
Accumulated other comprehensive income, net of taxes	(574,533)	(883,320)
Total Stockholders' Equity	6,894,622	7,365,185
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 15,843,141	$ 19,056,646