Note 3 - Net Loss Per Share

3 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 3 - NET LOSS PER SHARE

Basic net loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding for the period, and without consideration of potential common shares.  Diluted net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding for the period, plus dilutive potential common shares for the period determined using the treasury-stock method.  For purposes of this calculation, options and warrants to purchase stock and unvested restricted stock awards are considered to be potential common shares and are only included in the calculation of diluted net loss per share when their effect is dilutive.

In the years the preferred stock is outstanding, the two-class method is used to calculate basic and diluted earnings (loss) per common share since it is a participating security under ASC 260

Earnings per Share

. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Under the two-class method, basic earnings (loss) per common share is computed by dividing net earnings (loss) attributable to common share after allocation of earnings to participating securities by the weighted-average number of common shares outstanding during the year. Diluted earnings (loss) per common share is computed using the more dilutive of the two-class method or the if-converted method. In periods of net loss, no effect is given to participating securities since they do not contractually participate in the losses of the Company.

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data):

	Three months ended
	September 30,
	2015			2014
Numerator:
Net loss	$	(4,642	)	$	(5,065	)
Denominator:
Denominator for basic and diluted net loss per share		88,964			88,946
Basic and diluted net loss per share	$	(0.05	)	$	(0.06	)

The following table sets forth the outstanding securities not included in the diluted net loss per common share calculation as of September 30, 2015 and 2014, because their effect would be antidilutive (in thousands):

	As of September 30,
	201 5		201 4
Options to purchase common stock		4,628		5,956
Unvested restricted stock awards		543		306
Shares reserved for issuance upon conversion of Series A Preferred		19,147		19,147
Total		24,318		25,409