7. EARNINGS (LOSS) PER SHARE

3 Months Ended

Sep. 30, 2013

Notes to Financial Statements

NOTE 7 - EARNINGS (LOSS) PER SHARE

We report earnings per share in accordance with ASC 260, “Earnings Per Share.”  Basic earnings (loss) per share are computed using the weighted average number of shares outstanding during the period. Diluted earnings per share represent basic earnings per share adjusted to include the potentially dilutive effect of outstanding stock options.

For the three months ended September 30, 2013, we were in a net loss position and have excluded 1,093,170 stock options from the calculation of diluted net loss per share because these securities are anti-dilutive. The weighted average number of shares outstanding used to compute earnings per share is as follows:

	Three Months Ended September 30,
	2013			2012
Net income (loss) attributable to parent company	$	(1,093,624	)	$	738,584
Weighted-average shares of common stock outstanding:
Basic		10,374,369			11,832,248
Dilutive effect of common stock equivalents arising from stock options		–			204,788
Diluted Outstanding shares		10,374,369			12,037,036
Basic earnings (loss) per share	$	(0.11	)	$	0.06
Diluted earnings (loss) per share	$	(0.11	)	$	0.06