13. Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share includes the effect, if any, from the potential exercise or conversion of securities, such as stock options and warrants, which would result in the issuance of incremental shares of common stock.

The following presents a reconciliation of basic and diluted net income (loss) per share:

	Three Months Ended September 30,				Six Months Ended September 30,
	2018		2017		2018			2017
			(As Adjusted)					(As Adjusted)
Net income (loss)	$	3,513,000	$	5,595,000	$	(1,982,000	)	$	13,415,000
Basic shares		18,878,674		18,718,709		18,887,214			18,687,179
Effect of potentially dilutive securities		440,791		638,100		-			683,965
Diluted shares		19,319,465		19,356,809		18,887,214			19,371,144
Net income (loss) per share:
Basic net income (loss) per share	$	0.19	$	0.30	$	(0.10	)	$	0.72
Diluted net income (loss) per share	$	0.18	$	0.29	$	(0.10	)	$	0.69

Potential common shares that would have the effect of increasing diluted net income per share or decreasing diluted net loss per share are considered to be anti-dilutive and as such, these shares are not included in calculating diluted net income (loss) per share. For the three months ended September 30, 2018 and 2017, there were 746,094 and 455,339, respectively, of potential common shares not included in the calculation of diluted net income per share because their effect was anti-dilutive. For the six months ended September 30, 2018 and 2017, there were 1,504,794 and 292,239, respectively, of potential common shares not included in the calculation of diluted net income (loss) per share because their effect was anti-dilutive.