14. Earnings Per Share

12 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Earnings Per Share

Net earnings 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 do not include shares of restricted stock that have not yet vested, although such shares are included as outstanding shares in the Company’s Consolidated Balance Sheet. Diluted net earnings 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 restricted share awards, stock options and convertible preferred stock. Preferred stock dividends are subtracted from net earnings to determine the amount available to common stockholders.

The following table presents the computation of basic and diluted net earnings per share:

	Years Ended September 30,
	2017			2016
Basic
Net income attributed to Live Ventures Incorporated	$	6,501,780		$	17,829,857
Less: preferred stock dividends		(1,917	)		(1,917	)
Net income applicable to common stock	$	6,499,863		$	17,827,940
Weighted average common shares outstanding		2,210,104			2,815,072
Basic earnings per share	$	2.94		$	6.33

Diluted
Net income applicable to common stock	$	6,499,863	$	17,827,940
Add: preferred stock dividends		1,917		1,917
Net income applicable for diluted earnings per share	$	6,501,780	$	17,829,857
Weighted average common shares outstanding		2,210,104		2,815,072
Add: Options		48,407		21,166
Add: Common Stock Warrants		–		339,620
Add: Series B Preferred Stock		1,071,200		–
Add: Series B Preferred Stock Warrants		590,145		–
Add: Series E Preferred Stock		127,840		127,840
Assumed weighted average common shares outstanding		4,047,696		3,303,698
Diluted earnings per share	$	1.61	$	5.40

Potentially dilutive securities were excluded from the calculation of diluted net income per share for years ended September 30, 2017 and September 30, 2016. The weighted average number of dilutive securities excluded were 80,105 and 87,500, respectively for each fiscal year, because the effects were anti-dilutive based on the application of the treasury stock method.