Annual report pursuant to Section 13 and 15(d)

11. Net Loss Per Share

11. Net Loss Per Share

12 Months Ended

Sep. 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 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:

	Year Ended September 30,
	2014			2013

Loss from continuing operations	$	(4,661,381	)	$	(5,749,722	)
Less: preferred stock dividends		(1,925	)		(1,918	)
Loss from continuing operations applicable to common stock		(4,663,306	)		(5,751,640	)
Income from discontinued operations		–			2,708
Net loss applicable to common stock	$	(4,663,306	)	$	(5,748,932	)

Weighted average common shares outstanding - basic and diluted		13,144,248			9,394,260

Earnings per share - basic and diluted:
Loss from continuing operations	$	(0.35	)	$	(0.61	)
Discontinued operations		–			–
Net loss	$	(0.35	)	$	(0.61	)

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:

	Year Ended September 30,
	2014		2013
Options to purchase shares of common stock		600,000		675,000
Warrants to purchase shares of common stock		2,866,506		2,866,506
Series E convertible preferred stock		127,840		127,840
Convertible notes		739,601		–
Total potentially dilutive shares		4,333,947		3,669,346