Note 8 - Earnings (Loss) Per Share

9 Months Ended

Mar. 31, 2012

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 stock equivalents, such as shares issuable upon the exercise of outstanding stock options and upon the conversion of preferred stock.  There is no dilutive effect on earnings (loss) per share during loss periods.  As of March 31, 2012, 4,460,501 shares of common stock were issuable upon the conversion or exercise of options, warrants and preferred stock.  For the three months ended March 31, 2012 and 2011, there were 2,317,420 and 3,951,130 shares of common stock equivalents, respectively, excluded from the computation of diluted earnings (loss) per share because their effect would have been antidilutive. For the nine months ended March 31, 2012 and 2011, there were 488,500 and 3,951,130 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 nine months ended March 31, 2012 and 2011:

	Three Months Ended March 31,
	2012			2011
Numerator for basic and diluted earnings per share:
Net income	$	1,639,000		$	2,070,000
Preferred stock dividends		(32,000	)		(38,000	)
Net income available to common stockholders	$	1,607,000		$	2,032,000
Weighted average shares used in computing basic net income per share:		52,546,391			51,882,678
Assumed conversion of preferred stock		2,095,784			3,621,783
Effect of outstanding stock options		68,761			109,378
Weighted average shares used in computing diluted net income per share:		54,710,936			55,613,839
Income per common share, basic	$	0.03		$	0.04
Income per common share, diluted	$	0.03		$	0.04

	Nine Months Ended March 31,
	2012			2011
Numerator for basic and diluted earnings per share:
Net income	$	3,080,000		$	1,172,000
Preferred stock dividends		(110,000	)		(475,000	)
Net income available to common stockholders	$	2,970,000		$	697,000
Weighted average shares used in computing basic net income per share:		52,331,996			48,702,279
Assumed conversion of preferred stock		2,095,784			3,621,783
Effect of outstanding stock options		118,159			110,030
Weighted average shares used in computing diluted net income per share:		54,545,939			52,434,092
Income per common share, basic	$	0.06		$	0.01
Income per common share, diluted	$	0.05		$	0.01