Note 2. Net Income (loss) Per Common Share

6 Months Ended

Dec. 31, 2014

Notes

Note 2. Net Income (loss) Per Common Share

NOTE 2.  NET INCOME (LOSS) PER COMMON SHARE

Net income (loss) per common share is computed based on the weighted-average number of common shares outstanding and, when appropriate, dilutive common stock equivalents outstanding during the period.  Stock options are considered to be common stock equivalents.  The computation of diluted net income (loss) per common share does not assume exercise or conversion of securities that would have an anti-dilutive effect.

Basic net income (loss) per common share is the amount of net income (loss) for the period available to each weighted-average share of common stock outstanding during the reporting period. Diluted net income (loss) per common share is the amount of net income (loss) for the period available to each weighted-average share of common stock outstanding during the reporting period and to each common stock equivalent outstanding during the period, unless inclusion of common stock equivalents would have an anti-dilutive effect.

The reconciliations between the basic and diluted weighted-average number of common shares outstanding for the six months ended December 31, 2014 and 2013 are as follows:

	Three Months Ended		Six Months Ended
	December 31		December 31
	2014	2013	2014	2013
Basic weighted-average number of common shares outstanding during the period	2,520,389	2,518,904	2,520,389	2,518,904
Weighted-average number of dilutive common stock options outstanding during the period	-	2,338	-	-
Diluted weighted-average number of common and common equivalent shares outstanding during the period	2,520,389	2,521,242	2,520,389	2,518,904

Outstanding options for common shares not included in the computation of diluted net income (loss) per common share, because they were anti-dilutive, for the three months ended December 31, 2014 and 2013 totaled 139,610 and 145,607, respectively, and for the six months ended December 31, 2014 and 2013 totaled 139,610 and 152,726, respectively.