17. |
Net Loss
per Share of Common Stock |
● |
The
Company has adopted FASB Topic 260, “Earnings per Share,” which requires presentation of
basic and diluted EPS on the face of the income statement for all entities with complex capital structures
and requires a reconciliation of the numerator and denominator of the basic EPS computation to the
numerator and denominator of the diluted EPS computation. In the accompanying financial statements,
basic loss per share of common stock is computed by dividing net loss by the weighted average number
of shares of common stock outstanding during the year. Basic net loss per common share is based upon
the weighted average number of common shares outstanding during the period. Dilution is computed by
applying the treasury stock method. Under this method, options and warrants are assumed to be exercised
at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby
were used to purchase common stock at the average market price during the period.
Convertible
debt that is convertible into 24,638,241 and 8,538,462 shares of the Company’s common stock are not included in
the computation for the fiscal years ended June 30, 2020 and 2019, respectively. Additionally, there are 1,155,000 and
1,155,000 warrants that are exercisable into shares of stock as of June 30, 2020 and June 30, 2019, respectively.
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