NOTE 5 – (LOSS) EARNINGS PER SHARE

 

We report (loss) earnings per share in accordance with ASC 260, “Earnings Per Share.” Basic (loss) earnings per share are computed using the weighted average number of shares outstanding during the period. Diluted (loss) 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, which assumes that the proceeds from assumed option exercises are used to repurchase common shares in the market.

 

For the years ended June 30, 2025, and 2024, we were in a net loss position and have excluded 392,001 and 627,001 stock options from the calculation of diluted net loss per share because these securities are anti-dilutive.

 

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

        
   Year Ended June 30, 
   2025   2024 
Net loss attributable to Parent Company  $(243,101)  $(3,964,016)
Weighted-average shares of common stock outstanding:          
Basic   11,784,280    11,784,280 
Dilutive effect of common stock equivalents arising from stock options        
Diluted Outstanding shares   11,784,280    11,784,280 
Basic loss per share attributable to Parent Company stockholders  $(0.02)  $(0.34)
Diluted loss per share attributable to Parent Company stockholders  $(0.02)  $(0.34)

 

Historical Timeline

Fiscal YearFiled
2025Sep 29, 2025Showing above
2024Sep 30, 2024
2023Sep 28, 2023
2022Sep 13, 2022
2021Sep 28, 2021
2020Sep 17, 2020
2019Sep 30, 2019
2018Sep 28, 2018
2017Sep 28, 2017
2016Sep 28, 2016
2015Sep 28, 2015

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.