14.	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 (loss) income per share:

	Three Months Ended December 31,						Nine Months Ended December 31,
	2018			2017			2018			2017

				(As Adjusted)						(As Adjusted)
Net (loss) income	$	(3,102,000	)	$	(2,527,000	)	$	(5,084,000	)	$	10,888,000
Basic shares		18,810,702			19,069,152			18,861,617			18,814,967
Effect of potentially dilutive securities		-			-			-			585,777
Diluted shares		18,810,702			19,069,152			18,861,617			19,400,744
Net (loss) income per share:
Basic net (loss) income per share	$	(0.16	)	$	(0.13	)	$	(0.27	)	$	0.58
Diluted net (loss) income per share	$	(0.16	)	$	(0.13	)	$	(0.27	)	$	0.56

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 (loss) income per share. For the three months ended December 31, 2018 and 2017, there were 1,519,480 and 1,170,441, respectively, of potential common shares not included in the calculation of diluted net income per share because their effect was anti-dilutive. For the nine months ended December 31, 2018 and 2017, there were 1,519,480 and 289,572, respectively, of potential common shares not included in the calculation of diluted net (loss) income per share because their effect was anti-dilutive.