10. (Loss) Income Per Common Share

9 Months Ended

Dec. 31, 2014

(Loss) earnings per share:

(Loss) Income Per Common Share

The Company’s basic net (loss) income per share has been computed by dividing net (loss) income by the weighted average number of common shares outstanding during the period. Diluted net (loss) 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 and is computed by dividing net (loss) income by the weighted average number of common share 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 net (loss) income per share and diluted (loss) income per share for the three and nine month periods ended December 31, 2014 and 2013:

		Three Months Ended		Nine Months Ended
		December 31		December 31
		2014	2013	2014	2013
Net (loss) income		$ (175,321)	$ 88,659	$   (70,011)	$298,841
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		-	6,506	-	3,458
Weighted avg. common shares outstanding – dilutive		2,038,266	2,043,372	2,038,266	2,040,324
(Loss) earnings per common share:
	Basic	$       (0.09)	$        0.04	$       (0.03)	$        0.15
	Diluted	$       (0.09)	$        0.04	$       (0.03)	$        0.15

Due to a net loss for the three and nine months ended December 31, 2014, the weighted average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. For the three and nine months ended December 31, 2013, 75,000 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 had a weighted average exercise price of $6.42 at December 31, 2013.