Note 9 - Earnings (Loss) Per Share

3 Months Ended

Sep. 30, 2012

Earnings Per Share [Text Block]

9.  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 September 30, 2012, 5,577,684 shares of common stock were issuable upon the conversion or exercise of options, warrants and preferred stock.  For the three months ended September 30, 2012 and 2011, there were 2,724,011 and 4,174,448 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 for the three months ended September 30, 2012 and 2011:

	Three Months Ended September 30,
	2012			2011
Numerator for basic and diluted earnings per share:
Net income	$	576,000		$	402,000
Payment and/or accretion of preferred stock dividends		(28,000	)		(39,000	)
Net income available to common stockholders	$	548,000		$	363,000
Weighted average shares used in computing basic net income per share:		53,821,435			51,921,676
Effect of dilutive securities		1,069,314			216,432
Weighted average shares used in computing diluted net income per share:		54,890,749			52,138,108
Income per common share, basic	$	0.01		$	0.01
Income per common share, diluted	$	0.01		$	0.01