EARNINGS PER SHARE (EPS)

3 Months Ended

Jun. 30, 2016

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 all potential common share equivalents, which consists of stock options and convertible preferred stock that would be dilutive. 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 June 30, 2016		Three Months ended June 30, 2015
Basic EPS
Net income	$	445,303	$	206,351
Weighted average shares	27,324,593		24,867,019
Basic income per share	$	0.02	$	0.01
Diluted EPS
Net income	$	445,303	$	206,351
Dilutive effect of stock options and convertible preferred stock	387,326		—
Diluted weighted average shares	27,711,919		24,867,019
Diluted income per share	$	0.02	$	0.01

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. For the three months ended June 30, 2016, there were a combined 428,500 of potential common share equivalents that were out-of-the-money and were not included in the EPS calculations above. For the three months ended June 30, 2015, there were a combined 2,693,909 of potential common share equivalents that were out-of-the-money and were not included in the EPS calculations above.