8. INCOME (LOSS) PER SHARE

3 Months Ended

Jun. 30, 2012

Notes to Financial Statements

NOTE 8 - INCOME (LOSS) PER SHARE

Income (loss) per share is calculated under two different methods, basic and diluted. Basic income per share is calculated by dividing the net income by the weighted average shares of common stock outstanding during the period. Diluted income per share is calculated by dividing the net income by the weighted average shares of common stock outstanding during the period and dilutive potential shares of common stock. Dilutive potential shares of common stock, as determined under the treasury stock method, consist of shares of common stock issuable upon exercise of stock warrants or options, net of shares of common stock assumed to be repurchased by the Company from the exercise proceeds.

Since the Company incurred losses for the three months ended June 30, 2012 and 2011, the potential shares of common stock, consisting of approximately 411 million and 412 million shares, respectively, issuable under warrants and stock options, have been excluded from the calculations of diluted loss per share for those periods.