EARNINGS PER SHARE (EPS)

6 Months Ended

Sep. 30, 2011

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

NOTE 15 - EARNINGS PER SHARE (EPS)

Basic EPS is computed by dividing reported earnings available to stockholders by the weighted average shares outstanding.  Diluted EPS also includes the effect of dilutive potential common shares.  The following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations, as required under FASB ASC 260 for the periods ended September 30:

	Three months endedSeptember 30,					Six months endedSeptember 30,
	2011			2010		2011		2010
Basic EPS
Net income (loss)	$	(88,098	)	$	855,628	$	293,363	$	1,674,950
Weighted average number of shares outstanding	16,546,279			14,231,417		16,049,144		14,231,133
Basic income (loss) per share	$	(0.01	)	$	0.06	$	0.02	$	0.12
Diluted EPS
Net income (loss)	$	(88,098	)	$	855,628	$	293,363	$	1,674,950
Dilutive effect of stock options, warrants and preferred stock	—			6,336,620		8,094,812		6,526,279
Diluted weighted average shares	16,546,279			20,568,037		24,143,956		20,757,412
Diluted income (loss) per share	$	(0.01	)	$	0.04	$	0.01	$	0.08

For the three and six months ended September 30, 2011 and 2010 there were 8,457,830 and 762,000 shares, and 670,000 and 670,000 shares, respectively, of potentially anti-dilutive stock options, warrants and convertible preferred stock, none of which were included in the EPS calculations above.   All potential common shares equivalents that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) in fiscal 2012 second quarter are excluded from the calculation of diluted EPS.