Note 7 - Earnings Per Share

6 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

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, 2013, 5,855,399 shares of common stock were issuable upon the conversion or exercise of options, warrants and preferred stock. For the three months ended December 31, 2013 and 2012, there were 238,500 and 2,724,011 shares of common stock equivalents, respectively, excluded from the computation of diluted earnings per share because their effect would have been antidilutive. For the six months ended December 31, 2013 and 2012, there were 1,639,654 and 2,724,011 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, 2013 and 2012:

	Three Months Ended December 31,
	2013			2012
Numerator for basic and diluted earnings per share:
Net income from continuing operations	$	1,559,000		$	716,000
Preferred stock dividends		(27,000	)		(28,000	)
Net income from continuing operations available to common stockholders		1,532,000			688,000
Loss from discontinued operations, net of tax		—			(220,000	)
Loss on sale of discontinued operations, net of tax		(374,000	)		—
Net income available to common stockholders	$	1,158,000		$	468,000
Weighted average shares used in computing basic net income per share:		54,099,997			53,990,589
Assumed conversion of preferred stock		2,095,784			769,630
Effect of outstanding stock options		759,960			280,066
Weighted average shares used in computing diluted net income per share:		56,955,741			55,040,285
Earnings (loss) per common share attributable to common stockholders – basic
Income from continuing operations per common share	$	0.03		$	0.01
Loss from discontinued operations per common share		(0.01	)		—
Earnings per common share attributable to common stockholders – basic	$	0.02		$	0.01
Earnings (loss) per common share attributable to common stockholders – diluted
Income from continuing operations per common share	$	0.03		$	0.01
Loss from discontinued operations per common share		(0.01	)		—
Earnings per common share attributable to common stockholders – diluted	$	0.02		$	0.01

	Six Months Ended December 31,
	2013			2012
Numerator for basic and diluted earnings per share:
Net income from continuing operations	$	1,283,000		$	1,090,000
Preferred stock dividends		(55,000	)		(56,000	)
Net income from continuing operations available to common stockholders		1,228,000			1,034,000
Loss from discontinued operations, net of tax		—			(18,000	)
Loss on sale of discontinued operations, net of tax		(374,000	)		—
Net income available to common stockholders	$	854,000		$	1,016,000
Weighted average shares used in computing basic net income per share:		54,052,138			53,906,012
Assumed conversion of preferred stock		769,630			769,630
Effect of outstanding stock options		700,259			280,066
Weighted average shares used in computing diluted net income per share:		55,522,027			54,955,708
Earnings (loss) per common share attributable to common stockholders – basic
Income from continuing operations per common share	$	0.02		$	0.02
Loss from discontinued operations per common share		(0.01	)		—
Earnings per common share attributable to common stockholders – basic	$	0.01		$	0.02
Earnings (loss) per common share attributable to common stockholders – diluted
Income from continuing operations per common share	$	0.02		$	0.02
Loss from discontinued operations per common share		(0.01	)		—
Earnings per common share attributable to common stockholders – diluted	$	0.01		$	0.02