CAPITAL STOCK and EARNINGS PER SHARE

12 Months Ended

Mar. 31, 2026

CAPITAL STOCK and EARNINGS PER SHARE

CAPITAL STOCK and EARNINGS PER SHARE

NOTE 6 – CAPITAL STOCK and EARNINGS PER SHARE

Common Stock

We had 50,000,000 authorized shares of common stock on March 31, 2026 and 2025, respectively. There were 10,024,469 and 9,751,825 shares of common stock outstanding at March 31, 2026 and 2025, respectively.

Preferred Stock

We have 10,000,000 authorized shares of preferred stock and our board of directors has broad power to create one or more series of preferred stock and to designate the rights, preferences, privileges, and limitations of the holders of such series. There were no shares of preferred stock outstanding at March 31, 2026 and 2025.

Earnings per Share (EPS)

Basic EPS is computed by dividing reported earnings available to stockholders by the weighted average shares outstanding. Diluted EPS includes the effect of common stock equivalents that would be dilutive. Diluted weighted-average shares include weighted-average shares outstanding plus the dilutive effect of common stock equivalents calculated using the treasury stock method. 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.

	March 31,		March 31,
	2026		2025
Basic and diluted EPS
Net loss	$	(1,664)	$	(2,748)
Weighted average shares – basic and diluted		9,912,839		9,459,164
Net loss per share	$	(0.17)	$	(0.29)

The following table depicts common stock equivalents that could potentially dilute EPS in the future, but which were not included in the calculation of diluted EPS because to do so would have been antidilutive for the periods presented:

	March 31, 2026	March 31, 2025
Stock options	300,000	542,500
Warrants	686,083	711,083
Restricted stock	53,912	10,000

From time to time, we may enter contracts that are indexed to and are settled in our own stock, such as warrants. Contracts that require settlement in shares are equity instruments and measured at fair value. Subsequent changes in fair value are not recognized if the contracts continue to be classified as equity. In a fiscal 2025 private placement, we recorded the sale of common stock and warrants to purchase shares of our common stock as shareholder’s equity at a combined purchase price of $3.46. The portion of the proceeds received for the stock and warrant that are allocable to the warrant was accounted for as additional paid-in-capital. The allocation was based on the relative fair market values of the two securities at the time of issuance.

The fair value of the warrants was estimated using the Black-Scholes option-pricing model based on the closing stock prices at the grant date. Expected volatility of 86.4% was based on the historical volatility of our common stock. The average dividend yield over the historical period for which volatility was computed is zero. The risk-free interest rate of 4.2% was selected based upon yields of five-year U.S. Treasury issues and we used the simplified method to estimate the expected term of the warrants.