EARNINGS PER SHARE (EPS)

6 Months Ended

Sep. 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 September 30, 2016		Three Months ended September 30, 2015		Six Months ended September 30, 2016		Six Months ended September 30, 2015
Basic EPS
Net income	$	546,082	$	254,606	$	991,385	$	460,957
Weighted average number of shares outstanding	27,324,593		26,113,433		27,324,593		25,460,435
Basic income per share	$	0.02	$	0.01	$	0.04	$	0.02
Diluted EPS
Net income	$	546,082	$	254,606	$	991,385	$	460,957
Dilutive effect of stock options, warrants and preferred stock	696,202		143,969		611,505		43,107
Diluted weighted average shares	28,020,795		26,257,402		27,936,098		25,503,542
Diluted income per share	$	0.02	$	0.01	$	0.04	$	0.02

All potential common share equivalents that have an anti-dilutive effect (i.e. those that increase income per share) are excluded from the calculation of diluted EPS. For each of the three and six months ended September 30, 2016, there were 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 and six months ended September 30, 2015, there were, respectively, 2,630,837 and 3,407,066 of potential common share equivalents that were out-of-the-money and were not included in the EPS calculations above.