Income (Loss) Per Common Share

3 Months Ended

Jun. 30, 2013

Earnings (loss) per common share:

Income (Loss) Per Common Share

10.  Income (Loss) Per Common Share

Basic net income (loss) per share is computed by dividing net income (loss) by 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 income (loss) per share and diluted income (loss) per share for the three month periods ended June 30, 2013 and 2012.

	2013		2012
Net income (loss)	$	16,131	$	(63,217	)
Shares outstanding:
Weighted average common shares outstanding – basic		2,036,866		2,035,949
Effect of the assumed exercise of dilutive stock options		1,625		-
Weighted average common shares outstanding – dilutive		2,038,491		2,035,949
Earnings (loss) per common share:
Basic	$	0.01	$	(0.03	)
Diluted	$	0.01	$	(0.03	)

For the quarter ended June 30, 2013, 105,000 potential common shares relating to stock options were excluded in the computation of diluted net income per share because the options are anti-dilutive.  Anti-dilutive stock options have a weighted average exercise price of $6.38 at June 30, 2013.  Due to a net loss for the quarter ended June 30, 2012, the weighted average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive.