Annual report pursuant to Section 13 and 15(d)

2. Summary of Significant Accounting Policies: Net Loss Per Common Share (Policies)

v3.6.0.2
2. Summary of Significant Accounting Policies: Net Loss Per Common Share (Policies)
12 Months Ended
Sep. 30, 2016
Policies  
Net Loss Per Common Share

Net Loss Per Common Share

Basic net loss per common share ("Basic EPS") is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the year.

 

Diluted net loss per common share ("Diluted EPS") is computed by dividing net loss available to common stockholders by the sum of the weighted average number of common shares outstanding and the weighted-average dilutive common share equivalents outstanding.  The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect.

 

Common share equivalents consist of shares issuable upon the exercise of common stock warrants and options, shares issuable from restricted stock grants, and shares issuable pursuant to convertible notes and convertible Series D, Series E and Series F preferred stock.  The following table reflects the calculation of basic and diluted net loss per common share from continuing operations for the fiscal years ended September 30, 2016 and 2015:

 

 

 

2016

 

 

2015

 

Numerator:

 

 

 

 

Net loss, excluding discontinued

  operations

$

(16,338,456

)

$

(12,637,517

)

Effect of dilutive securities on net loss:

 

 

 

 

Common stock options and warrants

 

(1,857,070

)

 

-

 

 

 

 

 

Total net loss for purpose of

  calculating diluted net loss

  per common share

$

(18,195,526

)

 

$

(12,637,517

)

 

 

 

 

Number of shares used in per common share

  calculations:

 

 

 

 

Total shares for purposes of calculating basic

  net loss per common share

 

96,669,000

 

 

51,444,000

 

Weighted-average effect of dilutive securities:

 

 

 

 

Common stock options and warrants

 

1,378,503

 

 

-

 

 

 

 

 

Total shares for purpose of calculating diluted

  net loss per common share

 

98,047,503

 

 

51,444,000

 

 

 

 

 

Net loss per common share:

 

 

 

 

Basic

$

(0.17

)

$

(0.25

)

Diluted

$

(0.19

)

$

(0.25

)

 

The effect of dilutive securities on the numerator for purposes of calculating diluted loss per common share is related to the common stock options and warrants and convertible debt due to the reduction of the gain on derivatives liability.  The following table reflects the calculation of basic and diluted net income per common share from discontinued operations for the years ended September 30, 2016 and 2015:

 

 

 

2016

 

 

2015

 

Numerator:

 

 

 

 

Loss from discontinued operations

$

-

 

$

(186,232

)

 

 

 

 

Number of shares used in per common share

  calculations:

 

 

 

 

Total shares for purposes of calculating basic

  net loss per common share

 

96,669,000

 

 

102,897

 

Weighted-average effect of dilutive securities:

 

 

 

 

Common stock options and warrants

 

1,378,503

 

 

-

 

 

 

 

 

Total shares for purpose of calculating diluted

  net loss per common share

 

98,047,503

 

 

102,897

 

 

 

 

 

Net loss per common share:

 

 

 

 

Basic

$

-

 

 

$

-

 

Diluted

$

-

 

 

$

-

 

 

As of September 30, 2016 and 2015, there were certain outstanding common share equivalents that were not included in the computation of Diluted EPS as their effect would be anti-dilutive for the years then ended.  The common stock equivalents outstanding consist of the following as of September 30, 2016 and 2015:

 

 

2016

2015

Common stock options and warrants

14,970,587

9,497,551

Series D convertible preferred stock

225,000

225,000

Series E convertible preferred stock

477,834

477,830

Series F convertible preferred stock

-

16,065,328

Convertible debt

65,841,342

12,838,412

Restricted shares of common stock

7,500

7,500

Liability to issue common stock

3,692,308

-

Total common stock equivalents

85,214,571

39,111,621