3. BASIC AND DILUTED NET LOSS PER SHARES

12 Months Ended

Jun. 30, 2016

Net loss per common share - continuing operations

BASIC AND DILUTED NET LOSS PER SHARES

Basic net loss per share is based upon the weighted average number of common shares outstanding. Diluted net loss 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 loss per share for the year ended June 30, 2016 did not reflect the effects of shares potentially issuable upon conversion of convertible notes & preferred stock. These potentially issuable shares would have an anti-dilutive effect on the Company’s net loss per share in 2016. Diluted net income per share for the year ended June 30, 2015 reflected 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, 2016
	Net Loss			Shares		Per Share
Basic loss per share:
Net loss available to common shareholders	$	(81,952	)		67,953,870	$	(0.00	)
Effect of dilutive securities
Preferred stock Series B		-
Convertible Debt		-
Diluted loss per share	$	(81,952	)		67,953,870	$	(0.00	)

	For the year ended June 30, 2015
	Net Income		Shares		Per Share
Basic income per share:
Net income available to common shareholders	$	14,191		47,229,336	$	0.00
Effect of dilutive securities
Preferred stock Series B				37,745,637
Convertible Debt				-
Diluted income per share	$	14,191		84,974,973	$	0.00