Lots of cheap warrants 17. Earnings and Loss per Share
The Company calculates the basic and diluted income (loss) per common share using the weighted average
number of common shares outstanding during each period and the diluted income (loss) per share assumes that
the outstanding vested stock options and share purchase warrants had been exercised at the beginning of the
year.
The denominator for the calculation of loss per share, being the weighted average number of common shares,
is calculated as follows:
Year ended July 31, 2012 2011
Issued common shares at August 1, 105,808,970 82,690,789
Weighted average issuances 19,097,470 5,325,244
Basic weighted average common shares 124,906,440 88,016,033
Effect of dilutive warrants and options 16,586,599 -
Diluted weighted average common shares 141,493,039 88,016,033
Given the exercise price of the Company’s share purchase options outstanding exceeded the market price of
the Company’s shares on the exchange throughout the year ended July 31, 2012, shares issuable on exercise of
vested options totalling 4,868,015 were not included in the computation of diluted earnings per share. Shares
issuable on exercise of purchase options and warrants outstanding throughout the year ended July 31, 2011,
totalling 41,397,661 were not included in the computation of diluted loss per share because the impact would
be anti-dilutive.