Note 7 - Earnings Per Share

9 Months Ended

Mar. 31, 2013

Earnings Per Share [Text Block]

7. Earnings Per Share

Basic earnings per common share is computed by dividing net earnings available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share include the potential dilution that would occur from common shares issuable upon the exercise of outstanding stock options and warrants and the conversion of preferred stock. As of March 31, 2013, 5,576,010 shares of common stock were issuable upon the conversion or exercise of options, warrants and preferred stock. For the three months ended March 31, 2013 and 2012, there were 506,497 and 2,317,420 shares of common stock equivalents, respectively, excluded from the computation of diluted earnings per share because their effect would have been antidilutive. For the nine months ended March 31, 2013 and 2012, there were 1,397,857 and 488,500 shares of common stock equivalents, respectively, excluded from the computation of diluted earnings per share because their effect would have been antidilutive.

The following tables summarize the computations of basic and diluted earnings per common share for the three and nine months ended March 31, 2013 and 2012:

	Three Months Ended March 31,
	2013			2012
Numerator for basic and diluted earnings per share:
Net income	$	1,775,000		$	1,639,000
Preferred stock dividends		(26,000	)		(32,000	)
Net income available to common stockholders	$	1,749,000		$	1,607,000
Weighted average shares used in computing basic net earnings per share:		53,990,589			52,546,391
Assumed conversion of preferred stock		2,095,784			2,095,784
Effect of outstanding stock options		402,686			68,761
Weighted average shares used in computing diluted net earnings per share:		56,489,059			54,710,936
Earnings per share, basic	$	0.03		$	0.03
Earnings per share, diluted	$	0.03		$	0.03

	Nine Months Ended March 31,
	2013			2012
Numerator for basic and diluted earnings per share:
Net income	$	2,847,000		$	3,080,000
Preferred stock dividends		(82,000	)		(110,000	)
Net income available to common stockholders	$	2,765,000		$	2,970,000
Weighted average shares used in computing basic net earnings per share:		53,935,863			52,331,996
Assumed conversion of preferred stock		2,095,784			2,095,784
Effect of outstanding stock options		318,285			118,159
Weighted average shares used in computing diluted net earnings per share:		56,349,932			54,545,939
Earnings per share, basic	$	0.05		$	0.06
Earnings per share, diluted	$	0.05		$	0.05