Note 7 - Earnings (Loss) Per Share

12 Months Ended

Jun. 30, 2012

Earnings Per Share [Text Block]

7. Earnings Per Share

Basic earnings per common share is computed by dividing net earnings available to common stockholders by the weighted-average number of common shares outstanding for the period. Such outstanding shares include those issued through Employee Stock Compensation Plans, Board compensation, and the exercise of stock warrants. 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. As of June 30, 2012, 5,577,684 shares of common stock were issuable upon the conversion or exercise of options and preferred stock.  For the years ended June 30, 2012 and 2011, there were 1,427,860 and 6,620,768 shares of common stock equivalents, respectively, excluded from the computation of diluted earnings per share because their effect would have been antidilutive. The following summarizes the computations of basic and diluted earnings per common share:

	Years ended
	June 30, 2012			June 30, 2011
Numerator for basic and diluted earnings per share:
Net income	$	8,365,000		$	1,833,000
Payment of preferred stock dividends		(137,000	)		(515,000	)
Net income available to common stockholders	$	8,228,000		$	1,318,000
Weighted average shares used in computing basic net income per share:		52,625,538			49,585,611
Assumed conversion of preferred stock		2,095,784			—
Effect of outstanding stock options		179,609			110,832
Weighted average shares used in computing diluted net income per share:		54,900,931			49,696,443
Income per common share, basic	$	0.16		$	0.03
Income per common share, diluted	$	0.15		$	0.03