Income (loss) Per Common Share

9 Months Ended

Dec. 31, 2021

Income (loss) per common share:

Income (loss) Per Common Share

9. Income (loss) Per Common Share

The Company’s basic net income (loss) per share has been computed based on 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 and diluted net income (loss) per share for the three and nine month periods ended December 31, 2021 and 2020:

	Three Months Ended				Nine Months Ended
	December 31				December 31
	2021		2020		2021		2020
Net income (loss)	$	753,302	$	80,497	$	1,857,136	$	(261,143	)
Shares outstanding:
Weighted avg. shares outstanding – basic		2,120,912		2,051,081		2,096,433		2,044,054
Effect of assumed exercise of dilutive stock options		55,328		3,207		50,284		-
Weighted avg. shares outstanding – dilutive		2,176,240		2,054,288		2,146,717		2,044,054
Income (loss) per common share:
Basic	$	0.36	$	0.04	$	0.89	$	(0.13	)
Diluted	$	0.35	$	0.04	$	0.87	$	(0.13	)

For the three and nine months ended December 31, 2021, 31,000 shares relating to stock options were excluded from the computation of diluted net income because their inclusion would be anti-dilutive. Anti-dilutive stock options have a weighted average exercise price of $8.51 at December 31, 2021.

For the three ended December 31, 2020, 139,800 shares relating to stock options were excluded from the computation of diluted net income because their inclusion would be anti-dilutive. Anti-dilutive stock options have a weighted average exercise price of $6.12 at December 31, 2020.

Due to a net loss for the nine months ended December 31, 2020, the weighted average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive.