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10
GALAXY FOODS COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued)
(5) Net Income (Loss) per Share - Continued In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128 "Earnings Per Share" ("SFAS 128"). SFAS 128 establishes new standards for computing and presenting earnings per share ("EPS"). Specifically, SFAS 128 replaces the presentation of primary EPS with a presentation of basic EPS, requires dual 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. SFAS 128 is effective for financial statements issued for periods ending after December 15, 1997; earlier application is not permitted. EPS for the quarters ended September 30, 1997 and September 30, 1996 computed under SFAS 128 would not be materially different than previously computed.
(6) Supplemental Cash Flow Information For purposes of the statement of cash flows, all highly liquid investments with a maturity date of three months or less are considered to be cash equivalents. Cash and cash equivalents include checking accounts, money market funds and certificates of deposits.
For the six months ended September 30, 1997 1996
Noncash financing and investing activities: Consulting and directors fees paid through issuance of common stock warrants 39,813 26,469
Purchase of equipment under capital lease option -- 26,105
Warrants issued for consulting services 9,550 57,500
Cash paid for: Interest 39,830 16,860

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