NOTE

BASIC AND DILUTED NET

INCOME

PER SHARE

Basic net (loss) income

per share is based upon the weighted average number of common shares outstanding. Diluted net income per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

Diluted net income per share reflect

s the effects of shares potentially issuable upon conversion of convertible preferred stock.

The components of basic and diluted earnings per share were as follows:

	For the Three Months Ended December 3 1 , 2017
	Net Income			Shares		Per Share
Basic loss per share:
Net loss available to common shareholders	$	(22,103	)		29,559,139	$	(0.00	)
Effect of dilutive securities
Preferred stock Series B		-					-
Diluted loss per share	$	(22,103	)		29,559,139	$	(0.00	)

	For the Three Months Ended December 3 1 , 2016
	Net Income		Shares		Per Share
Basic income per share:
Net income available to common shareholders	$	1,016,446		29,559,139	$	0.03
Effect of dilutive securities
Preferred stock Series B		-		8,739,020		-
Diluted income per share	$	1,016,446		38,298,159	$	0.03

	For the Six Months Ended December 3 1 , 2017
	Net Income		Shares		Per Share
Basic income per share:
Net income available to common shareholders	$	849,601		29,559,139	$	0.03
Effect of dilutive securities
Preferred stock Series B		-		8,739,020		-
Diluted income per share	$	849,601		38,298,159	$	0.02

	For the Six Months Ended December 3 1, 2016
	Net Income		Shares		Per Share

Basic income per share:
Net income available to common shareholders	$	2,326,940		29,559,139	$	0.08
Effect of dilutive securities
Preferred stock Series B		-		8,739,020		-
Diluted income per share	$	2,326,940		38,298,159	$	0.06