Note 5 - Net Loss Per Share - Basic and Diluted

12 Months Ended

Jun. 30, 2013

Notes to Financial Statements

Note 5 - Net Loss Per Share – Basic and Diluted

Note 5 - Net Loss per Share – Basic and Diluted

The Company computes the loss per common share using ASC 260, Earnings per Share.  The net loss per common share, both basic and diluted, is computed based on the weighted average number of shares outstanding for the period.  The diluted loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted average shares outstanding assuming all potential dilutive common shares were issued.

As of June 30, 2013, the Company had 13,611,815 stock options and 18,433,867 warrants outstanding to purchase shares of common stock that were not included in the diluted net loss per common share because their effect would be anti-dilutive. The Company also had $100,000 of outstanding convertible notes payable, before discounts, which are convertible into approximately 1,428,571 shares of common stock as of June 30, 2013.  These items were also not included in the calculation of diluted net loss per common share because their effect would be anti-dilutive.