American Rare Earths & Materials, Corp.

CIK:0000797662|SEC Filings

LOSS PER SHARE

9 Months Ended

Mar. 31, 2012

NOTE 7 LOSS PER SHARE

Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the periods. Diluted loss per share reflects, in addition to the weighted average number of common shares, the potential dilution of stock options and warrants outstanding, exercised and/or converted into common stock, unless the effect of such equivalent shares was anti-dilutive.

For the nine months ended March 31, 2012 and 2011, the effect of stock options and other potentially dilutive shares was excluded from the calculation of diluted loss per common share, as their inclusion would have been anti-dilutive. Therefore, diluted loss per share is equal to basic loss per share. Such securities, shown below, presented on a common share equivalent basis and outstanding as at March 31, 2012 and 2011 have been excluded from the three month diluted loss per share computations:

	March 31, 2012		March 31, 2011
Warrants		840,985		2,690,985
Convertible Preferred stock		6,414,488		2,380,326
Due to Related Party		3,747,590		3,747,590
Stock Options		425,000		425,000

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Mar. 31, 2012	Mar. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,353,290)	$ (5,938,525)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Compensatory common stock and warrants	487,928	721,504
Depreciation	13,007	14,642
Amortization of intangible asset		392,086
Impairment of intangible asset		3,140,943
Foreign exchange loss	15,788
Accrued interest		(216)
Changes in:
Accounts receivable	(54,682)	25,619
Inventories	148,789	396,643
Prepaid expenses and other current assets	(22,081)	574,673
Accounts payable, accrued expenses and royalty payable	480,538	591,631
Deferred revenue	470	103,575
Due to Zeroloft Corp.		(129,208)
Net cash provided by (used in) operating activities	(283,533)	(106,633)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from (purchase of) short-term investments		251,875
Net cash provided by (used in) investing activities		251,875
CASH FLOWS FROM FINANCING ACTIVITIES:
Loan payable - related party	335,755
Exercise of warrants		110
Net cash provided by (used in) financing activities	235,035	(349,890)
DECREASE IN CASH AND CASH EQUIVALENTS	(48,498)	(204,648)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	256,461	513,035
CASH AND CASH EQUIVALENTS, END OF PERIOD	207,963	308,387
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid		141,953
Income taxes paid
Issuance of shares of common stock for dividends	180,000	180,000
Repayment of amount due to Zeroloft Corp. through application of receivable from Zeroloft Corp. for certain reimbursable costs		442,912
Shareholder
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of loan payable		(350,000)
Other
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of loan payable	$ (100,720)

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2012	Jun. 30, 2011
CURRENT ASSETS:
Cash and cash equivalents (includes restricted cash of $81,050 and $79,842 as of March 31, 2012 and June 30, 2011, respectively (Note 12))	$ 207,963	$ 256,461
Accounts receivable - net of allowance for doubtful accounts of $25,307 and $24,799 as of March 31, 2012 and June 30, 2011, respectively	546,922	492,240
Inventories, net	387,927	536,716
Prepaid expenses and other current assets	126,353	104,272
TOTAL CURRENT ASSETS	1,269,165	1,389,689
FIXED ASSETS, NET	28,916	41,923
TOTAL ASSETS	1,298,081	1,431,612
CURRENT LIABILITIES:
Accounts payable	314,426	515,714
Accounts payable - related party	461,703	461,703
Royalty payable	1,859,155	1,564,748
Accrued expenses	535,116	353,862
Deferred revenue	630	160
Dividends payable	60,000	60,000
Due to Zeroloft Corp. (Note 5)	277,881	277,881
TOTAL CURRENT LIABILITIES	6,262,490	5,530,659
CONTINGENCIES(Note 12)
SHAREHOLDERS' DEFICIT:
Common stock, $0.001 par value; 300,000,000 shares authorized, 33,896,152 and 25,782,299 issued and outstanding at March 31, 2012 and June 30, 2011, respectively	33,896	25,782
Additional paid-in capital	34,184,145	33,524,331
Accumulated deficit	(39,219,859)	(37,686,569)
TOTAL SHAREHOLDERS' DEFICIT	(4,964,409)	(4,099,047)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	1,298,081	1,431,612
Related Party Transactions
CURRENT LIABILITIES:
Accrued expenses	2,331,353	2,137,853
Loans and advances	158,738	158,738
Loan payable	263,488
Series A Preferred stock
SHAREHOLDERS' DEFICIT:
Convertible Preferred stock	2,114	2,114
Series B Preferred stock
SHAREHOLDERS' DEFICIT:
Convertible Preferred stock	$ 35,295	$ 35,295