CAPITAL STOCK and EARNINGS PER SHARE

12 Months Ended

Mar. 31, 2019

NOTE 12 - CAPITAL STOCK and EARNINGS PER SHARE

Common Stock

We had 90,000,000 authorized shares of common stock at March 31, 2019 and March 31, 2018. There were 29,234,594 and 28,824,593 shares of common stock outstanding at March 31, 2019 and March 31, 2018, 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, 2019 and 2018.

Earnings per Share

Basic EPS is computed by dividing reported earnings available to stockholders by the weighted average 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.

	March 31, 2019		March 31, 2018
Basic EPS
Net income (loss)	$	1,100,676	$	(265,908	)
Weighted average shares		28,878,780		28,824,593
Basic income (loss) per share	$	0.04	$	(0.01	)
Diluted EPS
Net income (loss)	$	1,100,676	$	(265,908	)
Dilutive effect of stock options		1,414,890		-
Diluted weighted average shares		30,293,670		28,824,593
Diluted income (loss) per share	$	0.04	$	(0.01	)

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 year ended March 31, 2019 there were 221,000 of potential common stock equivalents that were out-of-the-money and were not included in the EPS calculations. There were 1,161,077 of potential common stock equivalents that would have been anti-dilutive and were not included in the EPS calculations for the year ended March 31, 2018.