EARNINGS PER COMMON SHARE

9 Months Ended

Mar. 31, 2012

Earnings Per Common Share

EARNINGS PER COMMON SHARE

2.

EARNINGS PER COMMON SHARE

Earnings per Common Share (EPS) are presented on both a basic and diluted basis in accordance with the provisions of Accounting Standards Codification Topic 260- Earnings per Share. Basic EPS is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted EPS reflects the maximum dilution that would result after giving effect to dilutive stock options and convertible debentures. The following table presents the computation of basic and diluted EPS for the three and nine months ended March 31, 2012 and 2011:

	Three Months Ended March 31,
	2012		2011
Income from continuing operations	$	107,172	$	132,439
Average shares of common stock outstanding used to compute basic earnings per common share		1,431,503		1,431,503
Additional common shares to be issued assuming exercise of stock options, and conversion of convertible debentures		1,280,000		1,217,640
Additional income from continuing operations, assuming conversion of convertible debentures at the beginning of the period	$	14,400	$	14,400
Shares used to compute dilutive effect of stock options and convertible debentures		2,711,503		2,649,143
Basic earnings per common share from continuing operations	$	0.075	$	0.093
Diluted earnings per common share from continuing operations	$	0.045	$	0.055

	Nine Months Ended March 31,
	2012		2011
Income from continuing operations	$	184,212	$	311,772
Average shares of common stock outstanding used to compute basic earnings per common share		1,431,503		1,431,503
Additional common shares to be issued assuming exercise of stock options, and conversion of convertible debentures		1,280,000		1,098,571
Additional income from continuing operations, assuming conversion of convertible debentures at the beginning of the period	$	43,200	$	43,200
Shares used to compute dilutive effect of stock options and convertible debentures		2,711,503		2,530,074
Basic earnings per common share from continuing operations	$	0.129	$	0.218
Diluted earnings per common share from continuing operations	$	0.084	$	0.140