Annual report pursuant to Section 13 and 15(d)

11. Earnings (Loss) Per Share

11. Earnings (Loss) Per Share

12 Months Ended

Sep. 30, 2016

Net 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 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 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 restricted share awards, stock options and convertible preferred stock. Preferred stock dividends are subtracted from net earnings (loss) to determine the amount available to common stockholders.

The following table presents the computation of basic and diluted net earnings (loss) per share:

	Year Ending September 30,
	2016			2015
Basic

Net income (loss) attributed to Live Ventures Incorporated	$	17,829,857		$	(14,666,129	)
Less: preferred stock dividends		(1,917	)		(1,921	)
Net income (loss) applicable to common stock	$	17,827,940		$	(14,668,050	)

Weighted average common shares outstanding		2,815,072			2,627,636

Basic earnings (loss) per share	$	6.33		$	(5.58	)


Diluted

Net income (loss) applicable to common stock	$	17,827,940		$	(14,668,050	)
Add: preferred stock dividends		1,917			1,921
Net income (loss) applicable for diluted earnings (loss) per share	$	17,829,857		$	(14,666,129	)

Weighted average common shares outstanding		2,815,072			2,627,636
Add: Options		21,166			–
Add: Warrants		339,620			–
Add: preferred stock		127,840			–
Assumed weighted average common shares outstanding		3,303,698			2,627,636

Diluted earnings (loss) per share	$	5.40		$	(5.58	)

The following potentially dilutive securities were excluded from the calculation of diluted net loss per share for year ended September 30, 2015 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:

Options to purchase shares of common stock			175,000

Warrants to purchase shares of common stock			590,146

Series E convertible preferred stock			127,840

Total potentially dilutive shares			892,986