Electronic Game Card, Inc (fka EGMIQ)

[okvestor]

RE: Share count different in 10Q

Your post caused me to review the 9-30-09 10Q. You noted that "There is an issue as to the count as the figures on the 10Q are different. The cover page and balance sheet use different figures."

The most obvious reason for these differences is that the cover shows the common shares outstanding (70,086,709) as of the document completion date of November 15, 2009, while the balance sheet shows common shares outstanding (68,353,451) as of the balance sheet date of September 30, 2009. On the surface, this is not an error, with the difference in dates allowing for the exercise of stock options/warrants etc.

Just as an added note for others who may find confusion -- the number of shares used in the income statement for computing net income per share is also different because the calculation uses a weighted average number of shares throughout the period, while the balance sheet shows the number of shares outstanding at the end of the period. And of course, the income statement also shows both basic and diluted numbers, assuming the exercise of options and warrants and conversion of any convertible securities.