LOSS PER SHARE

3 Months Ended

Dec. 31, 2021

LOSS PER SHARE

LOSS PER SHARE

3.           LOSS PER SHARE

The Company computes basic income (loss) per share using the weighted average number of common shares outstanding. The Company computes diluted earnings per share using the if-converted method for preferred shares, if any, and the treasury stock method for stock options, respectively. As of December 31, 2021, the Company only had dilutive potential common shares, which related to shares issuable upon exercise of options. Shares issuable upon exercise of 1,654,270 options were not considered in computing diluted income (loss) per share for the three months ended December 31, 2021 because they were anti-dilutive. Additionally, there are 3,040,268 shares issuable upon conversion in connection with the convertible debt entered into on September 27, 2021. The Company computes diluted earnings per share using the if-converted method for the shares issuable in connection with the convertible debt. These shares were not considered in computing diluted (loss) per share for the three months ended December 31, 2021 because they were anti-dilutive. Shares issuable upon exercise of 704,340 options and 12 common shares issuable upon conversion of preferred shares were not considered in computing diluted (loss) per share for the three months ended December 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
	December 31,
	2021		2020
Basic and diluted net income (loss) per share:
Net loss applicable to common shareholders	$	(83,047)	$	(366)
Weighted average common shares outstanding
Basic		21,124		11,016
Diluted		21,124		11,016
Basic net loss per share	$	(3.93)	$	(0.03)
Diluted net loss per share	$	(3.93)	$	(0.03)