Quarterly report pursuant to Section 13 or 15(d)

10. Net Loss Per Share

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10. Net Loss Per Share
 6 Months Ended
Mar. 31, 2015
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 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,  
    2015     2014     2015     2014  
Net loss applicable to common stock   $ (1,095,220 )   $ (975,861 )   $ (6,042,654 )   $ (1,384,019 )
Less: preferred stock dividends     (479 )     (479 )     (962 )     (959 )
Net loss applicable to common stock   $ (1,095,699 )   $ (976,340 )   $ (6,043,616 )   $ (1,384,978 )
                                 
Weighted average common shares outstanding - basic and diluted     16,045,823       13,144,063       15,573,357       12,225,987  
Loss per share - basic and diluted:   $ (0.07 )   $ (0.07 )   $ (0.39 )   $ (0.11 )

 

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,  
    2015     2014     2015     2014  
Options to purchase shares of common stock     600,000       675,000       600,000       675,000  
Warrants to purchase shares of common stock     3,540,876       2,866,506       3,540,876       2,866,506  
Series E convertible preferred stock     127,840       127,840       127,840       127,840  
Shares of non-vested restricted stock     –       21,000       –       21,000  
Total potentially dilutive shares     4,268,716       3,690,346       4,268,716       3,690,346