Note 3. Net Income per Common Share

3 Months Ended

Sep. 30, 2018

Disclosure Text Block [Abstract]

Note 3. Net Income per Common Share

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

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

The reconciliations between the basic and diluted weighted-average number of common shares outstanding for the three months ended September 30 are as follows:

	2018		2017
Basic weighted-average number of common shares outstanding during the period		8,160,431		4,748,049
Weighted-average number of dilutive potential common shares outstanding during the period		240,393		260
Diluted weighted-average number of common and potential common shares outstanding during the period		8,400,824		4,748,309

Certain outstanding options, warrants and convertible preferred stock for common shares are not included in the computation of diluted net income per common share because they were anti-dilutive, which for the three months ended September 30, 2018, and 2017, totaled 2,776,106 and 8,910,190, respectively.