LOSS PER COMMON SHARE

3 Months Ended

Oct. 31, 2013

LOSS PER COMMON SHARE

LOSS PER COMMON SHARE

6. LOSS PER COMMON SHARE

        Basic loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding for the reporting period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted-average number of shares is increased by the dilutive effect of stock options, restricted share awards and warrants issued in connection with the senior secured term loan determined using the Treasury Stock method. There were antidilutive stock options and restricted share awards totaling 4.3 million and 5.0 million for the three months ended October 31, 2013 and 2012, respectively. There were antidilutive warrants totaling 11.1 million for both the three months ended October 31, 2013 and 2012.

        During the three months ended October 31, 2013 and 2012, we incurred a net loss of $27.3 million and $28.3 million, respectively. A net loss causes all outstanding stock options, restricted share awards and warrants to be antidilutive. As a result, the basic and dilutive losses per common share are the same for each of the three month periods presented.