Quarterly report pursuant to sections 13 or 15(d)

Note 8: Net Loss Per Share

Note 8: Net Loss Per Share

6 Months Ended

Mar. 31, 2013

Net loss per share is calculated using the weighted average number of shares of common stock outstanding during the applicable period. Basic weighted average common shares outstanding do not include shares of restricted stock that have not yet vested, although such shares are included as outstanding shares in the Company’s unaudited condensed consolidated balance sheet. Diluted net loss per share is computed using the weighted average number of common shares outstanding and if dilutive, potential common shares outstanding during the period. Potential common shares consist of the additional common shares issuable in respect of restricted share awards, stock options and convertible preferred stock. Preferred stock dividends are subtracted from net loss to determine the amount available to common stockholders.

The following table presents the computation of basic and diluted net loss per share:

	Three Months Ended March 31,						Six Months Ended March 31,
	2013			2012			2013			2012

Loss from continuing operations	$	(3,215,467	)	$	(259,222	)	$	(4,277,939	)	$	(454,440	)
Less: preferred stock dividends		(479	)		(479	)		(958	)		(958	)
Loss from continuing operations applicable to common stock		(3,215,946	)		(259,701	)		(4,278,897	)		(455,398	)
Income (loss) from discontinued operations		450			229			2,413			3,809
Net loss applicable to common stock	$	(3,215,496	)	$	(259,472	)	$	(4,276,484	)	$	(451,589	)

Weighted average common shares outstanding - basic and diluted		2,793,023			2,345,253			2,722,307			1,692,374

Earnings per share - basic and diluted:
Loss from continuing operations	$	(1.15	)	$	(0.11	)	$	(1.57	)	$	(0.27	)
Discontinued operations		0.00			–			0.00			–
Net loss	$	(1.15	)	$	(0.11	)	$	(1.57	)	$	(0.27	)

The following potentially dilutive securities were excluded from the calculation of diluted net loss per share because the effects were anti-dilutive based on the application of the treasury stock method and because the Company incurred net losses during the period:

	Three Months Ended March 31,				Six Months Ended March 31,
	2013		2012		2013		2012

Options to purchase shares of common stock		–		24,014		–		24,014
Warrants to purchase shares of common stock		722,534		–		955,502		–
Series E convertible preferred stock		127,840		127,840		127,840		127,840
Shares of non-vested restricted stock		263		1,342		263		1,342
		850,637		153,196		1,083,605		153,196

- Definition

The entire disclosure for earnings per share.

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