Note 12 - Net Loss Per Share

6 Months Ended

Mar. 31, 2016

. Net Loss Per Share

Basic and diluted net loss per share is computed as follows:

	Three Months Ended						Six Months Ended
(in thousands, except per share data)	March 31,						March 31,
	2016			2015			2016			2015
Net loss	$	(1,005	)	$	(2,073	)	$	(2,353	)	$	(4,183	)
Accrued dividends on convertible preferred stock		(32	)		(30	)		(64	)		(51	)
Net loss applicable to common shareholders	$	(1,037	)	$	(2,103	)	$	(2,417	)	$	(4,234	)

Weighted average common shares outstanding - basic		5,268			4,272			5,216			4,307
Effect of dilutive securities		-			-			-			-
Weighted average common shares outstanding - diluted		5,268			4,272			5,216			4,307

Net loss per share attributable to common shareholders:
Basic and diluted	$	(0.20	)	$	(0.49	)	$	(0.46	)	$	(0.98	)

Basic net loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding. Diluted net income per share is computed using the weighted average number of common shares outstanding during the period plus the dilutive effect of outstanding stock options and warrants using the “treasury stock” method. The computation of diluted earnings per share does not include the effect of outstanding stock options and warrants that are anti-dilutive

For the three and six months ended March 31, 2016, there were no options to purchase shares of the Company’s common stock considered as dilutive, as the options were all valued at less than the current market price. Warrants to purchase 723,281 shares of common stock and contingent shares to be issued in connection with prior acquisitions of ElementsLocal have also been excluded as they are anti-dilutive to the Company’s net loss. Also, excluded in the computation of diluted loss per share are the Series A convertible preferred stock shares as they are anti-dilutive to the Company’s net loss.

For the three and six months ended March 31, 2015, all options were excluded from the computation of diluted net loss per share as the effect

was anti-dilutive to the Company’s net loss.

Warrants to purchase 483,278 shares of common stock and contingent shares to be issued in connection with prior acquisitions of Marketnet, Magnetic and ElementsLocal have also been excluded as they are anti-dilutive to the Company’s net loss. Also, excluded in the computation of diluted loss per share are the Series A convertible preferred stock shares as they are anti-dilutive to the Company’s net loss.