Note 8 - Earnings per Common Share

9 Months Ended

Jun. 30, 2012

Earnings Per Share [Text Block]

8. Earnings per Common Share

Earnings per common share information is computed on the weighted average number of shares outstanding during each period based on the provisions of FASB Codification ASC Topic 260, "Earnings per Share." The required reconciliations are as follows:

	Three Months Ended June 30,						Nine Months Ended June 30,
	2012			2011			2012			2011
Basic Income (Loss) per Share
Income (Loss) available to common stockholders	$	(170,975	)	$	(125,949	)	$	(578,896	)	$	(657,612	)
Shares denominator		1,394,278			1,248,095			1,346,261			1,248,095
Per share amount	$	(.12	)	$	(.10	)	$	(.43	)	$	(.52	)
Effect of Dilutive Securities
Average shares outstanding		1,394,278			1,248,095			1,346,261			1,248,095
Stock options		-			-			-			-
		1,394,278			1,248,095			1,346,261			1,248,095
Diluted Income (Loss) per Share
Income (Loss) available to common stockholders	$	(170,975	)	$	(125,949	)	$	(578,896	)	$	(657,612	)
Per share amount	$	(.12	)	$	(.10	)	$	(.43	)	$	(.52	)

Options to purchase 42,000 shares of common stock during the third quarter and the first nine months of fiscal 2012 at prices ranging from $2.925 to $11.00 per share were outstanding but were not included in the computation of diluted earnings per share because the option's effect was antidilutive or the exercise price was greater than the average market price of the common share.

In addition, conversion rights to purchase 491,304 shares of common stock at a price of $1.85 per share were not included in the computation of diluted earnings per share because the conversion rights of the Convertible Promissory Notes effect was antidilutive.

During the third quarter and the first nine month period of fiscal 2011, options to purchase 64,850 shares of common stock, at prices ranging from $2.925 to $11.00 per share were outstanding but were not included in the computation of diluted earnings per share because the option's effect was antidilutive or the exercise price was greater than the average market price of the common shares.