NOTE 2

EARNINGS (LOSS) PER SHARE

The earnings (loss) per share were computed on the weighted average of outstanding common shares during the period.

	Three Months Ended
	September 30
	2017			2016
Net Loss	$	(56,847	)	$	(27,927	)

Preferred Dividend Requirements:
6% Prior Cumulative Preferred, $5 Par Value		15,000			15,000
5% Convertible Cumulative Preferred, $20 Par Value		17,018			17,018
Total Dividend Requirements		32,018			32,018

Net Loss - Common Stockholders	$	(88,865	)	$	(59,945	)

Diluted earnings per share are calculated by including contingently issuable shares with the weighted average shares outstanding.

	Three Months Ended
	September 30
	2017			2016
Weighted Average Shares - Basic		969,834			969,834
Dilutive Effect of Contingently Issuable Shares		1,033,334			1,033,334
Weighted Average Shares – Diluted		2,003,168			2,003,168

Basic Loss per Share	$	(0.09	)	$	(0.06	)

Diluted Loss per Share	$	(0.09	)	$	(0.06	)

The contingently issuable shares were not included in diluted earnings per common share as they would have an antidilutive effect upon earnings per share. Cumulative Preferred Stock dividends in arrears at September 30, 2017 and 2016 totaled $8,108,896 and $7,980,824, respectively. Total dividends in arrears, on a per share basis, consist of the following:

	Three Months Ended
	September 30
	2017		2016
6% Convertible
Series A	$	18	$	17
Series B	$	17	$	17
5% Convertible
Series A	$	68	$	67
Series B	$	68	$	67

The 6% convertible prior cumulative preferred stock may, upon thirty days prior notice, be redeemed by the Corporation at $5.25 a share plus unpaid accrued dividends to date of redemption. In the event of voluntary liquidation, holders of this stock are entitled to receive $5.25 per share plus accrued dividends. It may be exchanged for common stock at the option of the shareholders in the ratio of 4 common shares for one share of Series A and 3.75 common shares for one share of Series B.

The Company has the privilege of redemption of 5% convertible cumulative preferred stock at $21.00 a share plus unpaid accrued dividends. In the event of voluntary or involuntary liquidation, holders of this stock are entitled to receive $20.00 a share plus unpaid accrued dividends. It may be exchanged for common stock at the option of the shareholders, in the ratio of 3.795 common shares for one of preferred.