Income Per Common Share

3 Months Ended

Dec. 31, 2011

Notes to Financial Statements

9. Income Per Common Share

9.  Income Per Common Share

Basic net income per share is computed by dividing net income by 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 and is computed by dividing net income 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 per share and diluted income per share for the three and nine month periods ended December 31, 2011 and 2010:

	Three Months Ended				Nine Months Ended
	December 31				December 31
	2011		2010		2011		2010
Net income	$	50,961	$	26,898	$	234,618	$	102,714
Shares outstanding:
Weighted avg. common shares outstanding – basic		2,026,011		1,947,370		2,028,626		1,934,953
Effect of the assumed exercise of dilutive stock options		5,442		13,671		9,368		16,363
Weighted avg. common shares outstanding – dilutive		2,031,453		1,961,041		2,037,994		1,951,316
Earnings per common share:
Basic	$	0.03	$	0.01	$	0.12	$	0.05
Diluted	$	0.03	$	0.01	$	0.12	$	0.05

For the three and nine months ended December 31, 2011, 70,000 options were excluded from the diluted net income per share calculations because the options are anti-dilutive.  Anti-dilutive stock options have a weighted average exercise price of $6.58 at December 31, 2011.  For the three and nine months ended December 31, 2010, 61,250 options were excluded from the diluted net income per share calculations because the options are anti-dilutive.  Anti-dilutive stock options have a weighted average exercise price of $6.86 at December 31, 2010.