EARNINGS (LOSS) PER SHARE (EPS)

9 Months Ended

Dec. 31, 2011

EARNINGS (LOSS) PER SHARE (EPS)

EARNINGS (LOSS) PER SHARE (EPS)

NOTE 15 – EARNINGS (LOSS) 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 December 31:

	Three months endedDecember 31,					Nine months endedDecember 31,
	2011			2010		2011			2010
Basic EPS
Net (loss) income	$	(1,148,341	)	$	829,126	$	(854,979	)	$	2,504,076
Weighted average number of shares outstanding	17,072,021			14,283,346		16,364,844			14,248,601
Basic (loss) income per share	$	(0.07	)	$	0.06	$	(0.05	)	$	0.18
Diluted EPS
Net (loss) income	$	(1,148,341	)	$	829,126	$	(854,979	)	$	2,504,076
Dilutive effect of stock options, warrants and preferred stock	—			7,363,422		—			6,823,212
Diluted weighted average shares	17,072,021			21,646,768		16,364,844			21,071,813
Diluted (loss) income per share	$	(0.07	)	$	0.04	$	(0.05	)	$	0.12

All potential common shares equivalents that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the three and nine months ended December 31, 2010 there were 4,325,006 and 197,500 shares, and 12,442,306 and 457,500 shares, respectively, of potentially anti-dilutive stock options, warrants and convertible preferred stock, none of which were included in the EPS calculations above.