INCOME (LOSS) PER SHARE

12 Months Ended

Sep. 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 earnings 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 year ended September 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 year ended September 30, 2014, because they were also anti-dilutive.

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

	Years Ended September 30,
	2014			2013
Basic net income (loss) per share:
Net income (loss)	$	(1,070	)	$	773
Weighted average common shares outstanding		7,960			7,664
Basic net income (loss) per share	$	(0.13	)	$	0.10
Diluted net income (loss) per share:
Net income (loss) applicable to common shareholders	$	(1,070	)	$	773
Weighted average common shares outstanding		7,960			7,664
Plus: Incremental shares from assumed conversions:
Series A preferred shares		—			705
Dilutive stock options/shares		—			2
Diluted weighted average common shares outstanding		7,960			8,371
Diluted net income (loss) per share	$	(0.13	)	$	0.09