Net Income (Loss) per Share

9 Months Ended

Dec. 31, 2022

Net Income (Loss) per Share [Abstract]

Net Income (Loss) per Share

11. 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, which would result in the issuance of incremental shares of common stock to the extent such impact is not anti-dilutive.

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

	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2022		2021		2022			2021
Net income (loss)	$	1,026,000	$	3,139,000	$	(5,666,000	)	$	7,683,000
Basic shares		19,474,871		19,184,339		19,383,531			19,124,824
Effect of potentially dilutive securities		159,282		359,835		-			479,956
Diluted shares		19,634,153		19,544,174		19,383,531			19,604,780
Net income (loss) per share:
Basic net income (loss) per share	$	0.05	$	0.16	$	(0.29	)	$	0.40
Diluted net income (loss) per share	$	0.05	$	0.16	$	(0.29	)	$	0.39

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 December 31, 2022 and 2021, there were 1,201,984 and 1,130,694, respectively, of potential common shares not included in the calculation of diluted net income (loss) per share because their effect was anti-dilutive. For the nine months ended December 31, 2022 and 2021, there were 1,897,876 and 720,756, respectively, of potential common shares not included in the calculation of diluted net income (loss) per share because their effect was anti-dilutive.