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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;&lt;b&gt;3.&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Basic

      and Diluted Loss Per Common Share&lt;/b&gt;&lt;/font&gt;

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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;Basic

      net loss per share is computed using the weighted-average

      number of common shares outstanding during the period.

      Diluted net loss per share is computed using the

      weighted-average number of common shares and potentially

      dilutive common share equivalents outstanding during the

      period. Potentially dilutive common share equivalents consist

      of convertible preferred stock, stock options and stock

      purchase warrants. Common share equivalents which potentially

      could dilute basic earnings per share in the future, and

      which were excluded from the computation of diluted loss per

      share, as the effect would be anti-dilutive, totaled

      approximately 10.4 million and 13.6 million shares at June

      30, 2013 and 2012, respectively.&lt;/font&gt;

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