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NET LOSS PER SHARE OF COMMON STOCK
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6 Months Ended | |||||||||||||||||||||
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Apr. 30, 2015
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| Earnings Per Share [Abstract] | ||||||||||||||||||||||
| Earnings Per Share [Text Block] |
7.
NET LOSS PER SHARE OF COMMON STOCK
In accordance with ASC 260, “Earnings Per Share”, basic net income (loss) per common share (“Basic EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted net income (loss) per common share (“Diluted EPS”) is computed by dividing net income (loss) by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding. The treasury stock method reduces the dilutive effect of potentially dilutive securities as it assumes that any cash proceeds (from the issuance of
potentially dilutive securities) are used to buy back shares at the average share price during the period.
Dilutive EPS for the six months ended April 30, 2015 excluded stock options to purchase 13,601,995 shares and warrants to purchase 26,123,281 shares because their effect would be antidilutive. The following is a reconciliation between basic weighted average common shares outstanding and dilutive weighted average common shares outstanding for the six months ended April, 2015:
Diluted EPS for the three months ended April 30, 2015 and the six and three months ended April 30, 2014 are the same as Basic EPS, as the inclusion of the effect of common share equivalents then outstanding would be anti-dilutive. For this reason, excluded from the calculation of Diluted EPS for the three months ended April 30, 2014 were stock options to purchase 68,265,134 shares and warrants to purchase 26,123,281 shares and for the six and three months ended April 30, 2014 were stock options to purchase 71,327,845 shares, warrants to purchase 18,628,281 shares and debentures convertible into 18,498,943 shares.
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