NOTE 7 - EARNINGS (LOSS) PER SHARE

9 Months Ended

Mar. 31, 2012

NOTE 7 – EARNINGS (LOSS) PER SHARE

We report earnings per share in accordance with ASC 260, “Earnings Per Share.” Basic earnings (loss) per share are computed using the weighted average number of shares outstanding during the period. Diluted earnings (loss) per share represent basic earnings (loss) per share adjusted to include the potentially dilutive effect of outstanding stock options. Because we have incurred a net loss for the three and nine months ended March 31, 2012, the effect of outstanding stock options is anti-dilutive, and there is no difference between basic loss per share and diluted loss per share for these periods. As of March 31, 2012 and 2011, the number of stock options not included in the computation of diluted net loss per share totaled 876,502 and 649,333, respectively. The weighted average number of shares outstanding used to compute earnings per share is as follows:

	Three Months Ended March 31,					Nine Months Ended March 31,
	2012			2011		2012			2011
Net income (loss) before non-controlling interests	$	(868,130	)	$	1,412,572	$	(2,276,749	)	$	4,778,408
Non-controlling interests in net loss (income) of subsidiary		233,570			109,982		701,415			(97,758	)
Net income (loss)	$	(634,560	)	$	1,522,554	$	(1,575,334	)	$	4,680,650

Weighted-average shares of common stock outstanding:
Basic		11,882,971			11,890,729		11,850,790			11,453,902
Dilutive effect of common stock equivalents arising from stock options		-			180,652		-			180,652
Outstanding shares (diluted)		11,882,971			12,071,381		11,850,790			11,634,554
Basic earnings (loss) per share	$	(0.05	)	$	0.13	$	(0.13	)	$	0.41

Diluted earnings (loss) per share	$	(0.05	)	$	0.13	$	(0.13	)	$	0.40

- Definition

The entire disclosure for earnings per share.

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