Quarterly report pursuant to Section 13 or 15(d)

9. Net Loss Per Share

9. Net Loss Per Share

9 Months Ended

Jun. 30, 2014

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 June 30,						Nine Months Ended June 30,
	2014			2013			2014			2013
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Loss from continuing operations	$	(1,541,901	)	$	(511,464	)	$	(2,925,913	)	$	(4,789,403	)
Less: preferred stock dividends		(479	)		(479	)		(1,438	)		(1,438	)
Loss from continuing operations applicable to common stock		(1,542,380	)		(511,943	)		(2,927,351	)		(4,790,841	)
Income (loss) from discontinued operations		–			295			–			2,708
Net loss applicable to common stock	$	(1,542,380	)	$	(511,648	)	$	(2,927,351	)	$	(4,788,133	)

Weighted average common shares - outstanding basic and diluted		13,798,880			10,313,208			12,751,344			8,744,694

Earnings per share - basic and diluted:
Loss from continuing operations	$	(0.11	)	$	(0.05	)	$	(0.23	)	$	(0.55	)
Discontinued operations		–			–			–			–
Net loss	$	(0.11	)	$	(0.05	)	$	(0.23	)	$	(0.55	)

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 June 30,				Nine Months Ended June 30,
	2014		2013		2014		2013
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Options to purchase shares of common stock		675,000		675,000		675,000		675,000
Warrants to purchase shares of common stock		2,866,506		2,866,506		2,866,506		2,866,506
Series E convertible preferred stock		127,840		127,840		127,840		127,840
Shares of vested restricted stock		21,000		789		21,000		789
Total potentially dilutive shares		3,690,346		3,670,135		3,690,346		3,670,135