Earnings Per Share (EPS)

3 Months Ended

12 Months Ended

Jun. 30, 2015

Mar. 31, 2015

2.	Earnings Per Share (EPS):

Basic EPS is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted-average number of common shares outstanding (denominator) for the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period. The computation of diluted EPS uses the average market prices during the period.

Basic net loss per common share is computed using the weighted-average number of shares of common stock outstanding.

The following table represents the calculation of basic and diluted net loss per common share:

	Three Months Ended June 30,
	2015			2014

Net loss	$	(1,345	)	$	(1,248	)
Basic and diluted:
Weighted-average common shares outstanding		10,485			2,032
Weighted-average common shares used in per share computation		10,485			2,032

Net loss per share
Basic and diluted	$	(0.13	)	$	(0.61	)

The following shares of common stock equivalents were excluded from the computation of diluted earnings per share for the three months ended June 30, 2015 and 2014 because including them would have been anti-dilutive.

	June 30, 2015		June 30, 2014

Outstanding Options		610,619		383,427
Outstanding RSUs		23,921		152,631
		634,540		536,058

Warrants - Sequel		-		92,888
Warrants S-3 (June 2014)		27,405		27,405
Warrants - S-1		4,256,000		-
Warrants - underwriters		186,066		-
Shares Excluded from EPS calculation		5,104,011		656,351

The weighted-average exercise price per share of the excluded outstanding options and outstanding and deferred RSUs was $7.78 and $8.93 on June 30, 2015 and 2014, respectively.

At June 30, 2015, the Company had the following warrants outstanding to purchase the Company’s stock:

Issue Date	Outstanding Warrants		Exercise Price		Maturity Date

6/24/2014		27,405	$	2.50	6/24/2020
2/25/2015		4,256,000	$	1.18	2/25/2020
2/25/2015		115,200	$	1.56	2/18/2020
3/2/2015		70,866	$	1.59	2/25/2020
		4,469,471

Note 4.

Earnings Per Share (EPS)

Basic EPS is computed by dividing income (loss) available to common stockholders (numerator) by the weighted-average number of common shares outstanding (denominator) for the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period. The computation of diluted EPS uses the average market prices during the period. All amounts in the following table are in thousands except per share data. The weighted-average number of shares and the (loss) income per share reflect a 1-for-5 reverse stock split effected by the Company on June 15, 2011.

Basic net income (loss) per common share is computed using the weighted-average number of shares of common stock outstanding.

The following table represents the calculation of basic and diluted net income (loss) per common share (in thousands, except per share data):

	Year Ended March 31,
	2015			2014

Loss from continuing operations	$	(5,164	)	$	(3,469	)
Net income from discontinued operations, net of taxes		-			155

Net loss applicable to common stockholders	$	(5,164	)	$	(3,314	)
Basic and diluted:
Weighted-average common shares outstanding		3,387			1,965
Weighted-average common shares used in per share computation		3,387			1,965

Net loss per share from continuing operations:
Basic and diluted	$	(1.52	)	$	(1.77	)
Net income per share from discontinued operations:
Basic and diluted	$	-		$	0.08
Net loss per share:
Basic and diluted	$	(1.52	)	$	(1.69	)

The following shares of common stock equivalents and warrants were excluded from the computation of diluted earnings per share for the years March 31, 2015 and 2014 because including them would have been anti-dilutive.

	March 31, 2015		March 31, 2014

Outstanding Options		665,058		371,759
Outstanding RSUs		23,921		129,050
		688,979		500,809

Warrants - Sequel		-		92,888
Warrants S-3 (June 2014)		27,405		-
Warrants - S-1		4,256,000		-
Warrants - underwriters		186,066		-
Shares Excluded from EPS calculation		5,158,450		593,697

The weighted-average exercise price per share of the excluded outstanding options and outstanding and deferred RSUs of 688,979 and 500,809 was $8.39 and $10.17, as of March 31, 2015 and 2014, respectively.

The warrants to purchase 92,888 shares of common stock had an exercise price of $3.15 per share, and represented the balance of Sequel Power’s grant, which expired unexercised on January 14, 2015. In addition, the outstanding balance excludes 27,405 warrants to purchase shares of common stock, which were issued in connection with the recent public offering, which closed on June 25, 2104. These warrants have an exercise price of $2.50 per share and are not exercisable until June 24, 2015 and expire June 24, 2020. The S-1 warrants expire February 25, 2020 and have an exercise price of $1.18. Such securities could potentially dilute earnings per share in future periods.