Income Per Common Share

6 Months Ended

Sep. 30, 2014

Income per common share:

Income Per Common Share

10. Income Per Common Share

The Company’s basic net income per share has been computed based on the weighted average number of common shares outstanding during the period. Diluted net income 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. 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 per share and diluted income per share for the three and six month periods ended September 30, 2014 and 2013.

		Three Months Ended				Six Months Ended
		September 30				September 30
		2014		2013		2014		2013
Net income		$	86,256	$	194,051	$	105,310	$	210,182
Shares outstanding:
Weighted avg. common shares outstanding – basic			2,038,266		2,036,866		2,038,266		2,036,866
Effect of the assumed exercise of dilutive stock options			14,892		2,242		15,737		1,934
Weighted avg. common shares outstanding – dilutive			2,053,158		2,039,108		2,054,003		2,038,800
Earnings per common share:
	Basic	$	0.04	$	0.10	$	0.05	$	0.10
	Diluted	$	0.04	$	0.10	$	0.05	$	0.10

For the three months ended September 30, 2014, 105,000 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 $6.60 at September 30, 2014. 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.