NOTE 10 LOSS PER SHARE

Basic loss per share data for each period presented is computed using the weighted-average number of shares of common stock outstanding during each such period. Diluted loss per share data is computed using the weighted-average number of common and dilutive common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of (a) shares that would be issued upon the exercise of stock options and warrants, computed using the treasury stock method, (b) shares that would be issued upon the conversion of convertible preferred stock and (c) shares of non-vested restricted stock. Net loss from continuing operations per basic and diluted share for the fiscal years ended September 30, 2014 and 2013 includes preferred stock cash dividends and accretion, plus a beneficial conversion feature in the fiscal year ended September 30, 2013.

The following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive:

	As of September 30,
	2014	2013
Options	778,500	897,000
Warrants	723,846	723,846
Convertible preferred stock	692,919	692,919
Non-vested restricted stock	257,581	371,375
Total potentially dilutive shares	2,452,846	2,685,140

The calculation of basic and diluted loss per share for the fiscal years ended September 30, 2014 and 2013 was as follows:

	For the Fiscal Years Ended September 30,
	2014		2013
Numerator:
Net loss	$	(799,906)	$	(206,886)
Preferred stock dividends, accretion and
beneficial conversion feature		(193,200)		(546,888)
Net loss to common shareholders	$	(993,106)	$	(753,774)
Denominator:
Weighted average basic common shares		8,186,926		8,111,226
Effect of dilutive securities ⁽¹⁾		-		-
Weighted average diluted common shares		8,186,926		8,111,226
Basic loss per share	$	(0.12)	$	(0.09)
Diluted loss per share ⁽¹⁾	$	(0.12)	$	(0.09)

(1) Due to the net loss to common shareholders in each of the years presented above, diluted earnings per share was computed without consideration to potentially dilutive instruments as their inclusion would have been antidilutive. Potentially dilutive instruments include stock options, warrants, convertible preferred stock and non-vested restricted stock.