Earnings Per Share (EPS)

9 Months Ended

Mar. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share (EPS)

NOTE 4 – Earnings Per Share (EPS)

As presented below, basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period.  Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. For purposes of computing diluted EPS, the treasury stock method is used.

The following information was used in the computation of EPS on both a basic and diluted basis for the three and nine months ended March 31, 2012 and  2011:

	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
	March 31, 2012		March 31, 2011		March 31, 2012		March 31, 2011
Net income	$	36,000	$	530,000	$	852,000	$	1,199,000
Average basic common shares		6,365,960		6,349,782		6,362,753		6,338,747
Dilutive effect of stock options (1)		-		-		-		-
Average diluted common shares		6,365,960		6,349,782		6,362,753		6,338,747
Basic EPS:	$	0.01	$	0.08	$	0.13	$	0.19
Diluted EPS:	$	0.01	$	0.08	$	0.13	$	0.19

(1)Options to purchase 222,921 shares for the three and nine months ended March 31, 2012 and 2011 were outstanding but not included in the computation of earnings per share because they were anti-dilutive, meaning the exercise price of such options exceeded the market value of the Company’s common stock.