INCOME (LOSS) PER SHARE

6 Months Ended

Mar. 31, 2021

INCOME (LOSS) PER SHARE

INCOME (LOSS) PER SHARE

3.           INCOME (LOSS) PER SHARE

The Company computes basic income (loss) per share using the weighted average number of common shares outstanding. As of March 31, 2021, the Company had two categories of dilutive potential common shares: Series A preferred shares issued in May 2011 in connection with the Company’s registered direct offering and shares issuable upon exercise of options. The Company computes diluted earnings per share using the if-converted method for preferred shares and the treasury stock method for stock options, respectively. Shares issuable upon exercise of 671 options and 7 common shares issuable upon conversion of preferred shares were not considered in computing diluted income (loss) per share for the three and six months ended March 31, 2021 because they were anti-dilutive. Shares issuable upon exercise of 802 options and 17 common shares issuable upon conversion of preferred shares were not considered in computing diluted income (loss) per share for the three and six months ended March 31, 2020 because they were anti-dilutive.

The following table reconciles the computation of basic net loss per share to diluted loss per share:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
	2021		2020		2021		2020
Basic net loss per share:
Net loss applicable to common shareholders	$	(723)	$	(588)	$	(1,089)	$	(2,014)
Weighted average common shares outstanding		11,151		10,843		11,083		10,756
Basic net loss per share	$	(0.06)	$	(0.05)	$	(0.10)	$	(0.19)