3. Earnings/Loss Per Share
Basic earnings or loss per share is computed by dividing net income or loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income or loss available to common shareholders by the number of fully diluted shares, which includes the effect of dilutive potential issuances of common shares as determined using income from continuing operations, including the potential issuance of common shares upon the exercise, conversion or vesting of outstanding stock options and unvested restricted shares, as calculated under the treasury stock method, as well as shares associated with the Company’s convertible debt securities, which were converted during fiscal year 2016. Furthermore, we adjust our weighted average number of common shares outstanding by eliminating all shares of our common stock held by our VIE, Lani Pixels, in effect counting those shares as treasury shares fully excluded from the calculation of weighted average shares outstanding. When the Company reports a net loss, rather than net income, from continuing operations, the computation of diluted loss per share excludes dilutive common stock equivalents as their effect would be anti-dilutive. Therefore, weighted average dilutive common shares would be excluded from the calculation. The Company reported a net loss from continuing operations for the three and six months ended March 31, 2017 and 2016 and had no dilutive common stock equivalents at March 31, 2017 and 2016 that affected diluted net loss per share for the related periods.
For the three and six months ended March 31, 2017, there were 1.2 million and 1.8 million potentially dilutive securities respectively, representing outstanding stock options and other compensation arrangements (such as restricted share awards and warrants). For the three and six months ended March 31, 2016, potential dilutive securities, which consisted of outstanding stock options, unvested restricted stock, and preferred stock not included in dilutive weighted average shares were approximately 1.2 million and 1.8 million common stock equivalents for the three months ended March 31, 2017 and 2016, respectively and 1.2 million and 1.8 million for the six months ended March 31, 2017 and 2016, respectively.
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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Other recent filings from the company include the following:
May - June 5, 2018
Venue Change - June 4, 2018
Notification of the removal from listing and registration of matured, redeemed or retired securities - May 24, 2018