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6. EARNINGS PER SHARE
 3 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]  
EARNINGS PER SHARE

NOTE 6 – EARNINGS PER SHARE

 

We report earnings per share in accordance with ASC 260, “Earnings Per Share.” Basic earnings per share are computed using the weighted average number of shares outstanding during the period. Diluted earnings per share represent basic earnings per share adjusted to include the potentially dilutive effect of outstanding stock options by using the treasury stock method that the proceeds we receive from an in-the-money option exercise are used towards repurchasing common shares in the market. For the three months ended September 30, 2020 and 2019, we have calculated the diluted effect of common stock arising from 537,291 and 299,000 stock options, respectively.

 

The weighted average number of shares outstanding used to compute earnings per share is as follows:

 

   Three Months Ended September 30, 
   2020   2019 
Net income attributable to Parent Company  $6,920,360   $253,938 
           
Weighted-average shares of common stock outstanding:          
Basic shares outstanding   10,666,059    10,570,203 
Dilutive effect of common stock equivalents arising from stock options   151,991    135,297 
Diluted shares outstanding   10,818,050    10,705,500 
Basic earnings per share  $0.65   $0.02 
Diluted earnings per share  $0.64   $0.02