12.

Equity

Preferred Stock

As of March 31, 2016, there are 28,000 shares of Series B convertible preferred stock outstanding. The Company has the right to repurchase the outstanding Series B preferred stock at a redemption price equal to $25.00 per share, plus accrued and unpaid dividends. The holder of such shares has the right to convert shares of preferred stock into an aggregate of approximately 28,000 shares of our common stock at a conversion rate of $25.20 per share. In the event the Company elects to redeem these securities, the holder will be able to exercise its conversion right subsequent to the date that we issue a notice of redemption but prior to the deemed redemption date as would be set forth in such notice. Dividends on the Series B preferred stock accrue at a rate of $17,500 a quarter. At March 31, 2016, the Company has accrued dividends in the amount of $17,500 which remain unpaid.

As of March 31, 2016, there are 605,000 shares of Series D convertible preferred stock outstanding. The Series D preferred stock can be converted by the holders into an aggregate of 639,622 shares of common stock at an initial conversion rate of $9.77139 per share. The holders of such shares have the right to convert the preferred shares at any time; however, the shares received upon conversion may not be offered or sold except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The Company has the right to repurchase the outstanding Series D preferred stock at a redemption price equal to $10.00 per share, plus accrued and unpaid dividends, and to require holders to convert their Series D preferred stock beginning in June 2016. Dividends on the Series D preferred stock accrue at a rate of 5% per annum and are payable semi-annually in cash or stock at the Company’s option. At March 31, 2016, the Company has accrued dividends in the amount of approximately $248,000 which remain unpaid.

Common Stock

As discussed in Note 1 and 4 the AEON Acquisition on January 27, 2016 has been accounted for as a reverse merger under US GAAP. As such, AEON is considered the acquiring entity for accounting purposes; and therefore, legacy AEON’s historical results of operations replaced legacy AHC’s historical results of operations for all periods prior to the reverse merger. Additionally, the legacy AEON equity accounts at March 31, 2016 were retroactively restated to reflect the number of shares received in the business combination as defined by Note 3.

Earnings per Share

FASB ASC Topic 260, Earnings per Share, requires the presentation of basic and diluted earnings per share. Basic earnings per share is calculated based on the weighted-average number of ordinary shares outstanding during the period, while diluted earnings per share is calculated to include any dilutive effects to ordinary shares. For the three months and nine months ended March 31, 2016, our ordinary share equivalents consisted of stock options, restricted stock units, convertible debt, preferred stock and warrants.

	Three Months Ended March 31,				Nine Months Ended March 31,
	(As Restated, See Note 2)				(As Restated, See Note 2)
	2016		2015		2016		2015
Net (loss) income	$	(2,739,173)	$	1,690,871	$	6,338,972	$	7,137,922
Preferred stock dividends		67,082		-		67,082		-
(Loss) income available to common shareholders		(2,806,255)		1,690,871		6,271,890		7,137,922
Weighted average shares used in the computation of basic earnings per share		4,327,990		958,030		2,064,951		958,030
(Loss)earnings per share - basic	$	(0.65)	$	1.76	$	3.04	$	7.45

Dilutive
(Loss) income available to common shareholders	$	(2,806,255)	$	1,690,871	$	6,271,890	$	7,137,922
Less increase in fair value of warrants, net of income tax		-		-		205,360		-
Interest on convertible debt, net of income tax		-		-		19,982		-
Preferred stock dividends		-		-		67,082		-
(Loss) income applicable to common shareholders plus assumed conversions	$	(2,806,255)	$	1,690,871	$	6,564,314	$	7,137,922
Shares used in the computation of basic earnings per share		4,327,990		958,030		2,064,951		958,030
Dilutive effect of options and warrants convertible debt and convertible preferred		-		-		630,039		-
Shares used in the computation of diluted earnings per share		4,327,990		958,030		2,694,990		958,030

(Loss)earnings per share - diluted	$	(0.65)	$	1.76	$	2.44	$	7.45

Common Stock Warrants

A schedule of common stock warrant activity is as follows:

	Number of Shares		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding, July 1, 2015		-		-		-		-
Warrants assumed in reverse merger		4,313,180	$	5.24		-		-
Issued		-		-		-		-
Expired		-		-		-		-
Outstanding March 31, 2016		4,313,180	$	5.24		4.81	$	4,905,352
Exercisable, March 31, 2016		3,496,507	$	5.93		4.17	$	3,855,019