Quarterly report pursuant to sections 13 or 15(d)

Note 8: Net Loss Per Share

Note 8: Net Loss Per Share

9 Months Ended

Jun. 30, 2012

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 interim 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,
	2012			2011			2012			2011

Loss from continuing operations	$	(289,714	)	$	(1,150,933	)	$	(744,154	)	$	(5,064,985	)
Less: preferred stock dividends		(479	)		(479	)		(1,438	)		(1,438	)
Loss from continuing operations applicable to common stock		(290,193	)		(1,151,412	)		(745,592	)		(5,066,423	)
Income (loss) from discontinued operations		7,944			7,561			11,753			(123,486	)
Net loss applicable to common stock	$	(282,249	)	$	(1,143,851	)	$	(733,839	)	$	(5,189,909	)

Weighted average common shares outstanding - basic and diluted		2,402,168			682,374			1,928,589			659,296

Earnings per share - basic and diluted:
Loss from continuing operations	$	(0.12	)	$	(1.69	)	$	(0.39	)	$	(7.68	)
Discontinued operations		0.00			0.01			0.01			(0.19	)
Net loss	$	(0.12	)	$	(1.68	)	$	(0.38	)	$	(7.87	)

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 and Nine Months Ended June 30,
	2012	2011
Options to purchase shares of common stock	10,526	12,813
Warrants to purchase shares of common stock	98,971	–
Series E convertible preferred stock	127,840	127,840
Shares of non-vested restricted stock	1,342	2,283
	252,167	142,936