NOTE 4 LOSS PER SHARE

 

Basic loss per share data for each year presented is computed using the weighted average number of shares of common stock outstanding during each such year. Diluted loss per share data is computed using the weighted average number of common and potentially dilutive securities outstanding during each year. Potentially dilutive securities consist of shares that would be issued upon the exercise of stock options and warrants, computed using the treasury stock method. A reconciliation of basic and diluted loss per share is as follows:

 

Loss per Share

 

For the Year Ended

 

(In Thousands except for share

 

June 30,

 

and per share price)

 

2025

  

2024

 

Numerator:

        

Net (loss)

 $(948) $(1,372)

Denominator:

        

Weighted average common shares outstanding, basic and diluted

  9,910,244   10,482,857 
         

Net (loss) per share

        

Basic and diluted

 $(0.10) $(0.13)

 

The following securities were excluded from the calculation of diluted loss per share in each year because their inclusion would have been anti-dilutive: 

 

  

For the Nine Months Ended

 
  

March 31

 
  

2025

  

2024

 

Options

  450,000   250,000 

Total potentially dilutive shares

  450,000   250,000 

 

For the years ended June 30, 2025 and 2024, the Company had net losses, therefore all potentially dilutive securities are deemed to be anti-dilutive and are not included in the diluted loss per share computation. 200,000 options were granted in the year ended June 30, 2025.

 

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.