INCOME (LOSS) PER SHARE

9 Months Ended

Jun. 30, 2014

INCOME (LOSS) PER SHARE [Abstract]

INCOME (LOSS) PER SHARE

4. INCOME (LOSS) PER SHARE

We compute basic income (loss) per share using the weighted average number of common shares outstanding.

The Company has three categories of dilutive potential common shares: the Series A preferred shares issued in May 2011 in connection with the registered direct offering, the Warrants issued in connection with the same offering in May 2011, and shares issuable upon exercise of options. We compute diluted income (loss) per share using the if-converted method for preferred stock and warrants and the treasury stock method for stock options. Shares issuable upon exercise of options were not considered in computing diluted income (loss) per share for the nine months ended June 30, 2014, because they were anti-dilutive. Warrants for 799 common shares and 592 common shares issuable upon conversion of preferred shares were not considered in computing diluted income (loss) per share for the nine months ended June 30, 2014, because they were also anti-dilutive. Warrants for 1,377 common shares were not considered in computing diluted income (loss) per share for the three and nine months ended June 30, 2013, respectively, because they were anti-dilutive.

The following table reconciles our computation of basic income (loss) per share to diluted income (loss) per share:

	Three Months Ended June 30,					Nine Months Ended June 30,
	2014			2013		2014			2013
Basic net income (loss) per share:
Net Income (loss) applicable to common shareholders	$	215		$	576	$	(666	)	$	521
Weighted average common shares outstanding		8,068			7,673		7,922			7,656
Basic net income (loss) per share	$	0.03		$	0.08	$	(0.08	)	$	0.07
Diluted net income (loss) per share:
Net Income (loss) applicable to common shareholders	$	215		$	576	$	(666	)	$	521
Change in Fair Value of Warrant Liability		(66	)		-		-			-
Diluted net income (loss) applicable to common shareholders	$	149		$	576	$	(666	)	$	521
Weighted average common shares outstanding		8,068			7,673		7,922			7,656
Series A preferred shares		592			696		-			696
Class A warrants		810			-		-			-
Dilutive stock options/shares		155			31		-			1
Diluted weighted average common shares outstanding		9,625			8,400		7,922			8,353
Diluted net income (loss) per share:	$	0.02		$	0.07	$	(0.08	)	$	0.06