Note 7 - Earnings Per Share

6 Months Ended

Dec. 31, 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. Diluted earnings 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 December 31, 2012, 5,577,684 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, 2012 and 2011, there were 2,724,011 and 535,900 shares of common stock equivalents, respectively, excluded from the computation of diluted earnings per share because their effect would have been antidilutive.

The following tables summarize the computations of basic and diluted earnings per common share for the three and six months ended December 31, 2012 and 2011:

	Three Months Ended December 31,
	2012			2011
Numerator for basic and diluted earnings per share:
Net income	$	496,000		$	1,039,000
Preferred stock dividends		(28,000	)		(39,000	)
Net income available to common stockholders	$	468,000		$	1,000,000
Weighted average shares used in computing basic net income per share:		53,990,589			52,223,307
Assumed conversion of preferred stock		769,630			3,295,406
Effect of outstanding stock options		280,066			176,036
Weighted average shares used in computing diluted net income per share:		55,040,285			55,694,749
Income per common share, basic	$	0.01		$	0.02
Income per common share, diluted	$	0.01		$	0.02

	Six Months Ended December 31,
	2012			2011
Numerator for basic and diluted earnings per share:
Net income	$	1,072,000		$	1,441,000
Preferred stock dividends		(56,000	)		(78,000	)
Net income available to common stockholders	$	1,016,000		$	1,363,000
Weighted average shares used in computing basic net income per share:		53,906,012			52,072,435
Assumed conversion of preferred stock		769,630			3,295,406
Effect of outstanding stock options		280,066			195,218
Weighted average shares used in computing diluted net income per share:		54,955,708			55,563,059
Income per common share, basic	$	0.02		$	0.03
Income per common share, diluted	$	0.02		$	0.03