Quarterly report pursuant to Section 13 or 15(d)

10. Earnings (Loss) Per Share

10. Earnings (Loss) Per Share

3 Months Ended

Dec. 31, 2015

Earnings (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 is computed using the weighted average shares outstanding during the period. Diluted earnings (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 stock options, warrants and convertible preferred stock. The potential dilutive effect of stock options and warrants is calculated using the treasury stock method. 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 earnings (loss) per share:

	Three Months Ended December 31,
	2015			2014
Basic

Net income (loss) attributed to Live Ventures Incorporated	$	176,148		$	(4,947,434	)
Less: preferred stock dividends		(480	)		(483	)
Net income (loss) applicable to common stock	$	175,668		$	(4,947,917	)

Weighted average common shares outstanding		16,905,098			15,111,162

Basic earnings (loss) per share	$	0.01		$	(0.33	)

Diluted

Net income (loss) applicable to common stock	$	175,668		$	(4,947,917	)
Add: preferred stock dividends		480			483
Net income (loss) applicable for diluted earnings (loss) per share	$	176,148		$	(4,947,434	)

Weighted average common shares outstanding		16,905,098			15,111,162
Add: Options		129,344			–
Add: Warrants		2,057,207			–
Add: preferred stock		127,800			–
Assumed weighted average common shares outstanding		19,219,449			15,111,162

Diluted earnings (loss) per share	$	0.01		$	(0.33	)

The following is a list of potentially dilutive securities outstanding (prior to dilutive effect) at the respective periods:

	Three Months Ended December 31,
	2015		2014

Options to purchase shares of common stock		1,050,000		600,000
Warrants to purchase shares of common stock		3,540,876		3,540,876
Series E convertible preferred stock		127,840		127,840
Total potentially dilutive shares		4,718,716		4,268,716