Net Income (Loss) Per Share (EPS)

3 Months Ended

Oct. 31, 2014

Accounting Policies [Abstract]

Net Income (Loss) Per Share (EPS)

Note 7 – Net Income (Loss) Per Share (“EPS”):

Basic earnings per share (“EPS”) for the three-month periods ended October 31, 2014 and 2013 has been computed by dividing the net income available to common stockholders for the respective periods by the weighted average shares outstanding during those periods.

The following table represents a reconciliation of the basic and diluted EPS computations contained in our interim statements.

	Three Months Ended						Three Months Ended
	October 31, 2014						October 31, 2013
	Net Income		Weighted Average Shares		Earnings per Share		Net Income		Weighted Average Shares		Earnings per Share
Basic EPS	$	49,623		779,964,709	$	0.0001	$	530,094		584,122,030	$	0.0009
Effect of dilutive securities:
Stock options		—		31,246,728		—		—		32,308,428		—
Warrants		—		—		—		—		18,410,183		—
Convertible preferred stock		—		—		—		—		—		—
Diluted EPS	$	49,623		811,211,437	$	0.0001	$	530,094		634,840,641	$	0.0008

Diluted EPS for the three-month periods ended October 31, 2014 and 2013 has been computed by dividing the net income available to common stockholders for the respective periods by the diluted weighted average shares outstanding during that period. The weighted-average number of common shares outstanding does not include any potentially anti-dilutive securities. Per the treasury method of calculating diluted EPS, 31,246,728 shares representing outstanding stock options which have an exercise price lower than the average market price for the quarter ended October 31, 2014, are included in the calculation of EPS. All remaining outstanding stock options and warrants which have out-of-the-money exercise prices, representing 260,739,100 incremental shares in aggregate, have been excluded from the October 31, 2014 computation of diluted EPS, as they are anti-dilutive. In addition, 43,740,916 shares underlying the remaining Series E and F convertible preferred stock (including 9,299,250 shares for “make-whole payments”) have been excluded from the number of shares used in the diluted EPS calculation, as they are anti-dilutive.

Per the treasury method of calculating diluted EPS, 32,308,428 shares representing outstanding stock options and 18,410,183 shares representing outstanding warrants which have an exercise price lower than the average market price for the quarter ended October 31, 2013, are included in the calculation of EPS. All remaining outstanding stock options and warrants which have out-of-the-money exercise prices, representing 22,797,402 incremental shares in aggregate, have been excluded from the October 31, 2013 computation of diluted EPS, as they are anti-dilutive. In addition, 15,663,334 shares underlying the remaining Series E convertible preferred stock (including 3,330,000 shares for “make-whole payments”) have been excluded from the number of shares used in the diluted EPS calculation, as they are anti-dilutive.