Note 2 - Earnings (loss) Per Share

12 Months Ended

Sep. 30, 2016

NOTE 2 - EARNINGS (LOSS) PER SHARE

Under the provisions of ASC 260, "Earnings Per Share," basic income (loss) per common share is computed by dividing net income (loss) attributable to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted income (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of the company, subject to anti-dilution limitations.

The following table presents the computation of basic and diluted earnings (loss) per share for fiscal year 2016 and 2015:

	2016	2015
Net loss allocable to common shareholders:
Net loss from continuing operations	$ (20,415,753)	$ (4,650,661)
Net income from discontinued operations	0	1,554,144
Net loss allocable to common shareholders	(20,415,753)	(3,096,517)
Less: preferred stock dividends	(80,520)	(80,494)
Net loss allocable to common stockholders less preferred stock dividends	$ (20,496,273)	$ (3,177,011)
Weighted average common shares outstanding - basic and diluted	560,160	3,424
Net income (loss) per common share - basic and diluted:
Net loss from continuing operations	$ (36.59)	$ (1,381.76)
Net income from discontinued operations	0	453.90
Net income (loss) per common share - basic and diluted	$ (36.59)	$ (927.86)

Common stock equivalents are not included in the denominator in periods when anti-dilutive. We excluded 425,303,726 shares issuable upon conversion of series A preferred stock and 76,383,287 shares of common stock issuable upon conversion of convertible debt for the year ended September 30, 2016 as their effect was anti-dilutive. We excluded 450 shares of our common stock issuable upon exercise of options, 288,889 shares of our common stock issuable upon exercise of warrants, 5,402 shares issuable upon conversion of series A preferred stock and 1,417 shares of common stock issuable upon conversion of convertible debt for the year ended September 30, 2015 as their effect was anti-dilutive and reverse-splits.

CD INTERNATIONAL ENTERPRISES, INC. 10-K