EARNINGS PER SHARE (EPS)

9 Months Ended

Dec. 31, 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 December 31, 2016		Three Months ended December 31, 2015		Nine Months ended December 31, 2016		Nine Months ended December 31, 2015
Basic EPS
Net income	$	992,094	$	12,003	$	1,983,479	$	472,960
Weighted average number of shares outstanding	28,156,115		27,324,593		27,602,775		26,084,080
Basic income per share	$	0.03	$	0.00	$	0.07	$	0.02
Diluted EPS
Net income	$	992,094	$	12,003	$	1,983,479	$	472,960
Dilutive effect of stock options, warrants and preferred stock	717,122		185,387		658,335		126,126
Diluted weighted average shares	28,873,237		27,509,980		28,261,110		26,210,206
Diluted income per share	$	0.03	$	0.00	$	0.07	$	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 the three and nine months ended December 31, 2016, there were, respectively, 423,500 and 1,428,500 of potential common share equivalents that were out-of-the-money and were not included in the EPS calculations above. For the three and nine months ended December 31, 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.