Note 3 - Basic and Diluted Net Income Per Share

12 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 3. BASIC AND DILUTED NET INCOME PER SHARE

Basic net income per share is based upon the weighted average number of common shares outstanding. This calculation includes the weighted average number of Series B Convertible Preferred shares outstanding also, as they are deemed to be substantially similar to the common shares and shareholders are entitled to the same liquidation and dividend rights. 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. As of June 30, 2023 for were 281,696 common stock equivalents which were anti-dilutive. During the year ended June 30, 2022, the Company did not have any options or warrants or other dilutive financial instruments. As such, basic and diluted earnings per share were the same. 

Basic and 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:

	Year Ended June 30, 2023
	Net Income		Shares		Per Share
Basic income per share:
Net income available to common shareholders	$	1,136,540		39,383,459	$	0.03
Net income available to preferred shareholders		28,489		987,200	$	0.03
Basic income per share	$	1,165,029		40,370,659	$	0.03
Diluted income per share:
Net income available to common shareholders, basic	$	1,135,602		39,383,459
Impact of dilutive securities	$	962		33,340
Net income available to common shareholders, diluted		1,136,564		39,416,799	$	0.03
Net income available to preferred shareholders		28,465		987,200	$	0.03
Diluted income per share	$	1,165,029		40,403,999	$	0.03

	For the Year Ended June 30, 2022
	Net Income		Shares		Per Share
Basic income per share:
Net income available to common shareholders	$	1,116,745		38,047,411	$	0.03
Net income available to preferred shareholders		28,976		987,200	$	0.03
Basic and diluted income per share	$	1,145,721		39,034,611	$	0.03