EARNINGS PER SHARE

9 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 2 - EARNINGS PER SHARE

The income per share was computed on the weighted average of outstanding common shares during the period. Diluted earnings per share is calculated by including contingently issuable shares with the weighted average shares outstanding.

	Three Months Ended March 31						Nine Months Ended March 31
	2014			2013			2014			2013
Net (loss) income	$	(57,951	)	$	(55,765	)	$	89,018		$	95,363
Preferred dividend requirements:
6% Prior Cumulative Preferred, $5 par value		15,000			15,000			45,000			45,000
5% Convertible Cumulative Preferred, $20 par value		17,018			17,018			51,054			51,054
Total dividend requirements		32,018			32,018			96,054			96,054
Net loss - common stockholders	$	(89,969	)	$	(87,783	)	$	(7,036	)	$	(691	)
Weighted average shares - basic		969,834			969,834			969,834			969,834
Dilutive effect of contingently issuable shares		1,033,334			1,033,334			1,033,334			1,033,334
Weighted average shares - diluted		2,003,168			2,003,168			2,003,168			2,003,168
Basic earnings per share	$	(0.09	)	$	(0.09	)	$	(0.01	)	$	0.00
Diluted earnings per share	$	(0.09	)	$	(0.09	)	$	(0.01	)	$	0.00

Cumulative Preferred Stock dividends in arrears at March 31, 2014 and 2013 totaled $7,660,644 and $7,532,572, respectively. Total dividends in arrears, on a per share basis, consist of the following:

	Nine Months Ended March 31
	2014		2013
6% Convertible
Series A	$	17	$	16
Series B		16		16
5% Convertible
Series A		65		64
Series B		65		64

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.