E. Net Income (Loss) Per Common Share

3 Months Ended

Dec. 31, 2016

Net loss per weighted share attributable to common stockholders:

The Company computes basic net income (loss) per weighted average share attributable to common stockholders using the weighted average number of shares of common stock outstanding during the period. The Company computes diluted net income (loss) per weighted average share attributable to common stockholders using the weighted average number of shares of common and dilutive potential common shares outstanding during the period. Potential common shares outstanding consist of stock options, convertible debt, warrants and convertible preferred stock using the treasury stock method and are excluded if their effect is anti-dilutive. Diluted weighted average common shares did not include any incremental shares for the three months ended December 31, 2016 and 2015. Diluted weighted average common shares excluded incremental shares of approximately 85,825,000 and 87,697,000, respectively, for the three months ended 2016 and 2015, due to their anti-dilutive effect.

	For three months ended December 31,
	2016			2015
	(in thousands, except per share data)
Numerator:
Net loss	$	(1,087	)	$	(1,033	)
Less deemed dividend on Series C preferred stock		—			(580	)
Net loss attributable to common stockholders – basic	$	(1,087	)	$	(1,613	)

Net loss attributable to common stockholders – diluted	$	(1,087	)	$	(1,613	)
Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders – basic		152,086			139,439
Effect of potentially dilutive securities:
Common stock warrants		—			—
Convertible preferred stock		—			—
Common stock options		—			—
Weighted-average shares used in computing net loss per share attributable to common stockholders – diluted		152,086			139,439
Basic net loss per common share	$	(0.01	)	$	(0.01	)
Diluted net loss per common share	$	(0.01	)	$	(0.01	)

AEOLUS PHARMACEUTICALS, INC. 10-Q