Net Income (Loss) Per Share (EPS)

3 Months Ended

Oct. 31, 2015

Accounting Policies [Abstract]

Net Income (Loss) Per Share (EPS)

Note 6 – Net (Loss) / Income Per Share (“EPS”):

Basic EPS and Diluted EPS for the three-month period ended October 31, 2015 have been computed by dividing the net loss available to common stockholders for the period by the weighted average shares outstanding during each period. All outstanding stock options, non-vested restricted stock, warrants and common stock underlying convertible preferred stock, representing 606,644,111 incremental shares at October 31, 2015, have been excluded from the respective computations of Diluted EPS as they are anti-dilutive.

Basic EPS for the three-month period ended October 31, 2014 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 for the three-month period ended October 31, 2014:

	Three Months Ended
	October 31, 2014
	Net Income		Weighted Average Shares		Earnings per Share
Basic EPS	$	49,623		779,964,709	$	0.0001
Effect of dilutive securities:
Stock options		—		31,246,728		—
Warrants		—		—		—
Convertible preferred stock		—		—		—
Diluted EPS	$	49,623		811,211,437	$	0.0001

Diluted EPS for the three-month periods ended October 31, 2014 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.

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.