Quarterly report pursuant to Section 13 or 15(d)

10. Earnings (Loss) Per Share

v3.4.0.3
10. Earnings (Loss) Per Share
6 Months Ended
Mar. 31, 2016
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share

Earnings (loss) per share is calculated using the weighted average number of shares of common stock outstanding during the applicable period. Basic weighted average common shares outstanding is computed using the weighted average shares outstanding during the period. Diluted earnings (loss) per share is computed using the weighted average number of common shares outstanding and if dilutive, potential common shares outstanding during the period. Potential common shares consist of the additional common shares issuable in respect of stock options, warrants and convertible preferred stock. The potential dilutive effect of stock options and warrants is calculated using the treasury stock method. Preferred stock dividends are subtracted from net loss to determine the amount available to common stockholders.

   

The following table presents the computation of basic and diluted earnings (loss) per share:

 

    Three Months Ended March 31,     Six Months Ended March 31,  
    2016     2015     2016     2015  
Basic                                
                                 
Net income (loss) attributed to Live Ventures Incorporated   $ 1,218,508     $ (1,095,220 )   $ 1,394,656     $ (6,042,654 )
Less: preferred stock dividends     (479 )     (479 )     (959 )     (962 )
Net income (loss) applicable to common stock   $ 1,218,029     $ (1,095,699 )   $ 1,393,697     $ (6,043,616 )
                                 
Weighted average common shares outstanding     16,895,709       16,045,823       16,900,429       15,573,357  
                                 
Basic earnings (loss) per share   $ 0.07     $ (0.07 )   $ 0.08     $ (0.39 )
                                 
                                 
                                 
Diluted                                
                                 
Net income (loss) applicable to common stock   $ 1,218,029     $ (1,095,699 )   $ 1,393,697     $ (6,043,616 )
Add: preferred stock dividends     479       0       959       0  
Net income (loss) applicable for diluted earnings (loss) per share   $ 1,218,508     $ (1,095,699 )   $ 1,394,656     $ (6,043,616 )
                                 
Weighted average common shares outstanding     16,895,709       16,045,823       16,900,429       15,573,357  
Add: Options     97,912       0       115,106       0  
Add: Warrants     1,833,168       0       1,955,722       0  
Add: preferred stock     127,800       0       127,800       0  
Assumed weighted average common shares outstanding     18,954,589       16,045,823       19,099,057       15,573,357  
                                 
Diluted earnings (loss) per share   $ 0.06     $ (0.07 )   $ 0.07     $ (0.39 )
                                 

 

The following is a list of potentially dilutive securities outstanding (prior to dilutive effect) at the respective periods:

 

    Three Months Ended March 31,     Six Months Ended March 31,  
    2016     2015     2016     2015  
                         
Options to purchase shares of common stock     1,050,000       600,000       1,050,000       600,000  
Warrants to purchase shares of common stock     3,540,876       3,540,876       3,540,876       3,540,876  
Series E convertible preferred stock     127,840       127,840       127,840       127,840  
Total potentially dilutive shares     4,718,716       4,268,716       4,718,716       4,268,716