Quarterly report pursuant to sections 13 or 15(d)

Net Loss Per Share

v2.3.0.11
Net Loss Per Share
 3 Months Ended
Dec. 31, 2011
Net Loss Per Share

Note 7: Net Loss Per Share

Net loss per share is calculated using the weighted average number of shares of common stock outstanding during the 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 incremental common shares issuable from restricted shares, 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 December 31,  
    2011     2010  
             
Loss from continuing operations   $ (195,218 )   $ (1,884,554 )
   Less: preferred stock dividends     (479 )     (479 )
Loss from continuing operations                
    applicable to common stock     (195,697 )     (1,885,033 )
Income from discontinued operations     3,580       154,160  
Net loss applicable to common stock   $ (192,117 )   $ (1,730,873 )
                 
Weighted average common shares outstanding -                
  basic and diluted     1,043,960       636,828  
                 
Earnings per share - basic and diluted:                
   Loss from continuing operations   $ (0.18 )   $ (2.96 )
   Discontinued operations     0.00       0.24  
   Net loss   $ (0.18 )   $ (2.72 )

 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 December 31,  
    2011     2010  
             
Options to purchase shares of common stock     24,013       2,632  
Series E convertible preferred stock     127,840       127,840  
Shares of non-vested restricted stock     1,342       2,403  
      153,195       132,875