Note 13 – Earnings (loss) per share

Basic net loss per common share is computed by dividing net loss available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share includes the effect of potential common shares only when their inclusion is dilutive. Because the Company reported a net loss for the years ended June 30, 2026 and 2025, potential common shares were excluded from diluted net loss per share because their effect would have been antidilutive.

The following table reconciles the numerator and denominator used in the basic and diluted net loss per common share calculations:

The following potentially dilutive securities were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive:

Because the Company incurred a net loss in each period presented, the effect of all potential common shares was anti-dilutive and was excluded from diluted loss per share for the portion of each period during which the underlying instrument was outstanding. Common shares issued upon conversion or exercise were included in the basic and diluted weighted-average share denominator beginning on their respective issuance dates.

The fiscal 2026 denominator includes 23,064,634 shares issued on conversion of the Convertible Note from June 1, 2026, 13,000,000 shares issued on conversion of the Series A Preferred Stock from June 3, 2026, and 218,952,662 shares issued on cashless exercise of the HH Warrant from June 11, 2026.