10. (Loss) Income Per Common Share

3 Months Ended

Jun. 30, 2015

(Loss) income per common share:

(Loss) Income Per Common Share

10. (Loss) Income Per Common Share

The Company’s basic net (loss) income per share has been computed based on 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 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 net (loss) income per share and diluted (loss) income per share for the three month periods ended June 30, 2015 and 2014.

	2015			2014
Net (loss) income	$	(324,366	)	$	19,054
Shares outstanding:
Weighted average common shares outstanding – basic		2,037,266			2,038,266
Effect of the assumed exercise of dilutive stock options		-			16,581
Weighted average common shares outstanding – dilutive		2,037,266			2,054,847
(Loss) income per common share:
Basic	$	(0.16	)	$	0.01
Diluted	$	(0.16	)	$	0.01

Due to a net loss for the three months ended June 30, 2015, the weighted average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. For the quarter ended June 30, 2014, 35,000 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 $5.98 at June 30, 2014.