Income (Loss) Per Common Share

6 Months Ended

Sep. 30, 2013

Earnings (loss) per common share:

Income (Loss) Per Common Share

10.  Income (Loss) Per Common Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period.  Diluted net income (loss) per share assumes the exercise of all stock options having exercise prices less than the average market price of the common stock during the period using the treasury stock method and is computed by dividing net income (loss) by the weighted average number of common shares and dilutive potential common shares (stock options) outstanding during the period.  In periods where losses are reported, the weighted-average number of common shares outstanding excludes potential common shares, because their inclusion would be anti-dilutive.

The following is a reconciliation of the number of shares used in the calculation of basic income (loss) per share and diluted income (loss) per share for the three and six month periods ended September 30, 2013 and 2012.

	Three Months Ended				Six Months Ended
	September 30				September 30
	2013		2012		2013		2012
Net income (loss)	$	194,051	$	763	$	210,182	$	(62,454	)
Shares outstanding:
Weighted avg. common shares outstanding – basic		2,036,866		2,035,949		2,036,866		2,035,949
Effect of the assumed exercise of dilutive stock options		2,242		2,291		1,934		-
Weighted avg. common shares outstanding – dilutive		2,039,108		2,038,240		2,038,800		2,035,949
Earnings (loss) per common share:
Basic	$	0.10	$	0.00	$	0.10	$	(0.03	)
Diluted	$	0.10	$	0.00	$	0.10	$	(0.03	)

For the three and six month periods ending September 30, 2013, 105,000 potential common shares relating to stock options were excluded in the computation of diluted net income because the options are anti-dilutive.  Anti-dilutive stock options have a weighted average exercise price of $6.38 at September 30, 2013. For the three months ended September 30, 2012, 70,000 potential common shares relating to stock options were excluded in the computation of diluted net income per share.  Anti-dilutive stock options have a weighted average exercise price of $6.55 at September 30, 2012. Due to a net loss for the six months ended September 30, 2012, the weighted average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive.