INCOME (LOSS) PER SHARE

6 Months Ended

Mar. 31, 2016

Earnings 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 Company’s 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 the treasury stock method for stock options and warrants. Shares issuable upon exercise of options, warrants for 799 common shares and 592 common shares issuable upon conversion of preferred shares were not considered in computing diluted earnings per share for the three and six months ended March 31, 2016, respectively, because they were anti-dilutive. Shares issuable upon exercise of options and 592 common shares issuable upon conversion of preferred shares were not considered in computing diluted earnings per share for the three months ended March 31, 2015 because they were anti-dilutive.

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

	Three Months Ended March 31,				Six Months Ended March 31,
	2016		2015		2016		2015
Basic net income (loss) per share:
Net income (loss) applicable to common shareholders	$	(254)	$	150	$	(760)	$	332
Weighted average common shares outstanding		8,108		8,076		8,107		8,076
Basic net income (loss) per share	$	(0.03)	$	0.02	$	(0.09)	$	0.04
Diluted net income (loss) per share:
Net income (loss) applicable to common shareholders	$	(254)	$	150	$	(760)	$	332
Change in Fair Value of Warrant Liability		—		(199)		—		(319)
Diluted net income (loss) applicable to common shareholders	$	(254)	$	(49)	$	(760)	$	13
Weighted average common shares outstanding		8,108		8,076		8,107		8,076
Plus: Incremental shares from assumed conversions
Series A preferred shares		—		—		—		592
Class A warrants		—		29		—		64
Dilutive stock options/shares		—		—		—		131
Diluted weighted average common shares outstanding		8,108		8,105		8,107		8,863
Diluted net income (loss) per share	$	(0.03)	$	(0.01)	$	(0.09)	$	0.00