Note 8 - Earnings Per Share

6 Months Ended

Dec. 31, 2011

Earnings Per Share [Text Block]

8.  Earnings (Loss) Per Share

Basic earnings (loss) per common share is computed by dividing net earnings (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings (loss) per common share include the potential dilution that would occur from common shares issuable upon the exercise of outstanding stock options and warrants and the conversion of preferred stock.  There is no dilutive effect on earnings (loss) per share during loss periods.  As of December 31, 2011, 5,894,652 shares of common stock were issuable upon the conversion or exercise of options, warrants and preferred stock.  For the three and six months ended December 31, 2011 and 2010, there were 535,900 and 3,963,140 shares of common stock equivalents, respectively, excluded from the computation of diluted earnings (loss) per share because their effect would have been antidilutive.

The following tables summarize the computations of basic and diluted earnings (loss) per common share for the three and six months ended December 31, 2011 and 2010:

	Three Months Ended December 31,
	2011			2010
Numerator for basic and diluted earnings per share:
Net income	$	1,039,000		$	1,272,000
Payment of preferred stock dividends		(39,000	)		(40,000	)
Net income available to common stockholders	$	1,000,000		$	1,232,000
Weighted average shares used in computing basic net income per share:		52,223,307			51,875,739
Assumed conversion of preferred stock		3,295,406			3,621,783
Effect of outstanding stock options		176,036			101,510
Weighted average shares used in computing diluted net income (loss) per share:		55,694,749			55,599,032
Income per common share, basic	$	0.02		$	0.02
Income per common share, diluted	$	0.02		$	0.02

	Six Months Ended December 31,
	2011			2010
Numerator for basic and diluted earnings per share:
Net income (loss)	$	1,441,000		$	(899,000	)
Payment and/or accretion of preferred stock dividends		(78,000	)		(437,000	)
Net income (loss) available to common stockholders	$	1,363,000		$	(1,336,000	)
Weighted average shares used in computing basic net income (loss) per share:		52,072,435			47,288,544
Assumed conversion of preferred stock		3,295,406			—
Effect of outstanding stock options		195,218			—
Weighted average shares used in computing diluted net income (loss) per share:		55,563,059			47,288,544
Income (loss) per common share, basic	$	0.03		$	(0.03	)
Income (loss) per common share, diluted	$	0.03		$	(0.03	)