NET INCOME (LOSS) PER SHARE

6 Months Ended

Dec. 31, 2024

Net loss per common share

NET INCOME (LOSS) PER SHARE

NOTE 3. NET INCOME (LOSS) PER SHARE

Basic net (loss) income per share is based upon the weighted average number of common shares outstanding. This calculation includes the weighted average number of shares of Series B, Voting, Convertible Preferred Stock (“Series B Preferred Stock”) outstanding as they are deemed to be substantially similar to the common shares and shareholders are entitled to the same liquidation and dividend rights and each share of Series B Preferred Stock is convertible at any time into 20 shares of the Company’s common stock. Diluted net (loss) income per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. The Company excluded common stock equivalents from the diluted net loss per share calculation as their effect would be anti-dilutive as follows: 1.1 million, 1.4 million, 1.1 million and 1.4 million for the three months and six months ended December 31, 2024 and 2023, respectively. Since the Company generated a net loss in the quarter ended December 31, 2024, basic and diluted net (loss) income per share were the same.

Basic and diluted net income (loss) per share reflects the effects of shares potentially issuable upon conversion of the convertible Series B Preferred Stock.

The components of basic and diluted earnings per share were as follows (in thousands, except per share data):

	Three Months Ended December 31, 2024								Three Months Ended December 31, 2023
	Net Loss			Shares		Per Share			Net Loss			Shares		Per Share
Basic and diluted net loss per share:
Net loss available to common shareholders	$	(1,705	)		39,876	$	(0.04	)	$	(1,154	)		39,410	$	(0.03	)
Net loss available to preferred shareholders		(42	)		987	$	(0.04	)		(29	)		987	$	(0.03	)
Basic and diluted net loss per share	$	(1,747	)		40,863	$	(0.04	)	$	(1,183	)		40,397	$	(0.03	)

	Six Months Ended December 31, 2024								Six Months Ended December 31, 2023
	Net Loss			Shares		Per Share			Net Loss			Shares		Per Share
Basic and diluted net loss per share:
Net loss available to common shareholders	$	(3,251	)		39,868	$	(0.08	)	$	(1,642	)		39,410	$	(0.04	)
Net loss available to preferred shareholders		(81	)		987	$	(0.08	)		(42	)		987	$	(0.04	)
Basic and diluted net loss per share	$	(3,332	)		40,855	$	(0.08	)	$	(1,684	)		40,397	$	(0.04	)