7. EARNINGS (LOSS) PER SHARE

6 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 7 – EARNINGS (LOSS) PER SHARE

We report earnings per share in accordance with ASC 260, “Earnings Per Share.” Basic earnings 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 by using the treasury stock method that the proceeds we receive from an in-the-money option exercise are used towards repurchasing common shares in the market. For the three and six months ended December 31, 2020 and 2019, we have calculated the diluted effect of common stock arising from 499,000 and 299,000 stock options, respectively.

The weighted average number of shares outstanding used to compute loss per share is as follows:

	Three Months ended December 31,				Six Months Ended December 31,
	2020		2019		2020		2019
Net income attributable to Parent Company	$	6,856,611	$	580,878	$	13,776,971	$	834,816
Weighted-average shares of common stock outstanding:
Basic shares outstanding		11,566,309		10,570,203		11,118,511		10,570,203
Dilutive effect of common stock equivalents arising from stock options		160,973		137,825		160,973		137,825
Diluted shares outstanding		11,727,282		10,708,028		11,279,484		10,708,028
Basic income per share	$	0.59	$	0.05	$	1.24	$	0.08
Diluted income per share	$	0.58	$	0.05	$	1.22	$	0.08