EARNINGS PER SHARE (EPS)

9 Months Ended

Dec. 31, 2015

NOTE 17 - 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 share equivalents, which consist of convertible preferred stock and stock options. 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.

	Three Months ended December 31, 2015		Three Months ended December 31, 2014			Nine Months ended December 31, 2015		Nine Months ended December 31, 2014
Basic EPS
Net income (loss)	$	12,003	$	(945,718	)	$	472,960	$	(2,865,557	)
Weighted average number of shares outstanding	27,324,593		24,669,958			26,084,080		24,447,736
Basic income (loss) per share	$	0.00	$	(0.04	)	$	0.02	$	(0.12	)
Diluted EPS
Net income (loss)	$	12,003	$	(945,718	)	$	472,960	$	(2,865,557	)
Dilutive effect of stock options, warrants and preferred stock	185,387		—			126,126		—
Diluted weighted average shares	27,509,980		24,669,958			26,210,206		24,447,736
Diluted income (loss) per share	$	0.00	$	(0.04	)	$	0.02	$	(0.12	)

All potential common share 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. There were 900,500 potential common share equivalents that were out-of-the-money and were not included in the EPS calculations above for both the three and nine month periods ended December 31, 2015. For the three and nine months ended December 31, 2014, there were, respectively, 3,288,008 and 2,277,951 anti-dilutive potential common share equivalents, which were not included in the EPS calculations above.