EARNINGS (LOSS) PER SHARE

6 Months Ended

Mar. 31, 2012

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

NOTE 3- EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per common share are computed based upon the weighted average number of common shares outstanding during the three and six months ended March 31, 2012 and 2011, respectively.  Diluted earnings per common share is computed based on common shares outstanding plus the effect of dilutive stock options and other potentially dilutive common stock equivalents consisting of stock options and convertible debentures.  The dilutive effect of stock options and other potentially dilutive common stock equivalents is determined using the treasury stock and if-converted method based on the Company’s average stock price for the period. 

The following table sets forth the computation of basic and diluted earnings per share for the three and six-month periods ended March 31, 2012 and 2011, respectively.

	Three Months Ended March 31,		Six Months Ended March 31,
	2012	2011	2012	2011
Numerator:
Net loss	$(243,642)	$(366,333)	$(612,201)	$(550,513)
Denominator:
Weighted –average shares outstanding	15,494,622	15,472,670	15,492,194	15,471,160
Effect of dilutive shares	--	--	--	--
Denominator for diluted earnings per share	15,494,622	15,472,670	15,492,194	15,471,160
Basic Earnings (loss) per share	$(0.02)	$(0.02)	$(0.04)	$(0.04)
Diluted Earnings (loss) per share	$(0.02)	$(0.02)	$(0.04)	$(0.04)

Diluted net loss per share does not include the effect of the following common stock equivalents related to outstanding convertible debentures and stock purchase options as their effect would be antidilutive:

	Three Months Ended March 31,		Six Months Ended March 31,
	2012	2011	2012	2011
Convertible notes	11,571,022	11,571,022	11,571,022	11,571,022
Warrants	5,000,000	5,000,000	5,000,000	5,000,000
Options to purchase common stock	3,137,208	3,102,208	3,137,208	3,102,208
Total anti dilutive instruments	19,708,230	19,673,230	19,708,230	19,673,230