Quarterly report pursuant to Section 13 or 15(d)

10. Net Loss Per Share

10. Net Loss Per Share

9 Months Ended

Jun. 30, 2015

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,
	2015			2014			2015			2014

Net loss applicable to common stock	$	(4,208,391	)	$	(1,541,901	)	$	(10,251,045	)	$	(2,925,913	)
Less: preferred stock dividends		(480	)		(479	)		(1,442	)		(1,438	)
Net loss applicable to common stock	$	(4,208,871	)	$	(1,542,380	)	$	(10,252,487	)	$	(2,927,351	)

Weighted average common shares outstanding - basic and diluted		16,151,289			13,798,880			15,766,001			12,751,344

Loss per share - basic and diluted:	$	(0.26	)	$	(0.11	)	$	(0.65	)	$	(0.23	)

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,
	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