NOTE 6 - EARNINGS PER SHARE

Basic earnings per share, or EPS, is computed by dividing reported earnings available to stockholders by the weighted average number of shares outstanding. Diluted EPS also includes the effect of stock options 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		Three months		Nine months		Nine months
	ended		ended		ended		ended
	December 31,		December 31,		December 31,		December 31,
	2019		2018		2019		2018
Basic EPS:
Net (loss) income	$	(319,770)	$	218,022	$	(390,014)	$	563,122
Weighted average shares		29,254,594		28,858,560		29,254,230		28,835,957
Basic (loss) income per share	$	(0.01)	$	0.01	$	(0.01)	$	0.02
Diluted EPS:
Net (loss) income	$	(319,770)	$	218,022	$	(390,014)	$	563,122
Dilutive effect of stock options		—		1,568,658		—		1,322,552
Diluted weighted average shares		29,254,594		30,427,218		29,254,230		30,158,509
Diluted (loss) income per share	$	(0.01)	$	0.01	$	(0.01)	$	0.02

All potential common stock 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, 2019, there were 2,967,000 of potentially anti-dilutive stock options, none of which were included in the EPS calculations above. For the three and nine months ended December 31, 2018, there were 171,000 and 642,668, respectively, of potential common stock equivalents that were out-of-the-money and were not included in the EPS calculations above.