Note 3 - Basic and Diluted Net Income Per Share

12 Months Ended

Jun. 30, 2020

NOTE

BASIC AND DILUTED NET INCOME PER SHARE

Basic net 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. The Company does

not

have any options or warrants.

Diluted net income per share reflects the effects of shares actually potentially issuable upon conversion of convertible preferred stock.

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

	For the year ended June 30, 2020
	Net Income		Shares		Per Share
Basic income per share:
Net income available to common shareholders	$	1,773,401		37,390,524	$	0.05
Effect of dilutive securities		-		-		-
Preferred stock Series B		-		1,060,640		-
Diluted income per share	$	1,773,401		38,451,164	$	0.05

	For the year ended June 30, 2019
	Net Income		Shares		Per Share
Basic income per share:
Net income available to common shareholders	$	261,849		32,588,418	$	0.01
Effect of dilutive securities		-		-		-
Preferred stock Series B		-		5,709,741		-
Diluted income per share	$	261,849		38,298,159	$	0.01