Annual report pursuant to Section 13 and 15(d)

11. Net Loss Per Share

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11. Net Loss Per Share
12 Months Ended
Sep. 30, 2014
Earnings Per Share [Abstract]  
Net Loss Per Share

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