Quarterly report pursuant to Section 13 or 15(d)

12. Earnings Per Share

12. Earnings Per Share

3 Months Ended

Dec. 31, 2016

Net earnings 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 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 to determine the amount available to common stockholders.

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

	Three Months Ended December 31,
	2016			2015
Basic

Net income attributed to Live Ventures Incorporated	$	1,428,573		$	176,148
Less: preferred stock dividends		(479	)		(480	)
Net income applicable to common stock	$	1,428,094		$	175,668

Weighted average common shares outstanding		1,999,983			2,817,516

Basic earnings per share	$	0.71		$	0.06

Diluted

Net income applicable to common stock	$	1,428,094		$	175,668
Add: preferred stock dividends		479			480
Net income applicable for diluted earnings per share	$	1,428,573		$	176,148

Weighted average common shares outstanding		1,999,983			2,817,516
Add: Options		44,355			21,557
Add: Common Stock Warrants		–			342,868
Add: Series B Preferred Stock		1,071,200			–
Add: Series B Preferred Stock Warrants		590,145			–
Add: Series E Preferred Stock		127,840			127,840
Assumed weighted average common shares outstanding		3,833,523			3,309,782

Diluted earnings per share	$	0.37		$	0.05