The Company's significant accounting policies are described in Note "Summary of Significant Accounting Policies," in the Company's Annual Report on Form -K for the fiscal year ended There have been material changes in these policies or their application. 

 

Certain prior period amounts have been reclassified to conform to the current period presentation for comparative purposes.

 

The Company calculates basic loss per common share by dividing net loss by the weighted average number of common shares outstanding during the periods. Diluted loss per common share includes the impact from all dilutive potential common shares relating to outstanding convertible securities.

  

For the months ended and basic and diluted weighted-average common shares outstanding were and respectively. For the months ended and basic and diluted weighted-average common shares outstanding were and respectively. The Company incurred a net loss for the and months ended and and therefore, basic and diluted loss per share for the periods are the same because the inclusion of potential common equivalent shares were excluded from diluted weighted-average common shares outstanding during the period, as the inclusion of such shares would be anti-dilutive. The total potentially dilutive common shares outstanding at and excluded from diluted weighted-average common shares outstanding, which include common shares underlying outstanding convertible debt, stock options and warrants, were and respectively.

 

We follow the liability method of accounting for income taxes under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements and (ii) operating loss and tax credit carry-forwards for tax purposes. Deferred tax assets are reduced by a valuation allowance when, based upon management’s estimates, it is more likely than that a portion of the deferred tax assets will be realized in a future period. We recognized a full valuation allowance as of and and have recognized any tax provision or benefit for any of the periods presented. We review our tax positions quarterly for tax uncertainties. We did have any uncertain tax positions as of or

 

In the United States (“U.S.”) enacted the Tax Cuts and Jobs Act (the Act”), which changes existing U.S. tax law and includes various provisions that are expected to affect companies. Among other things, the Act reduces the top U.S. corporate income tax rate from to and makes changes to certain other business-related exclusions, deductions and credits. The Company is in the process of assessing the impact of the tax bill on the financial statements as of Due to the Company's full valuation allowance, the tax effects of any changes are expected to have a material impact on our consolidated financial statements.