Note 5 - Net Income per Share

6 Months Ended

Sep. 30, 2016

Note 5 – Net Income per Share

Net income per share has been computed according to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC 260”), “Earnings per Share,” which requires a dual presentation of basic and diluted income (loss) per share (“EPS”). Basic EPS represents net income (loss) divided by the weighted average number of common shares outstanding during a reporting period. Diluted EPS reflects the potential dilution that could occur if securities, including warrants and options, were converted into common stock. The dilutive effect of outstanding warrants and options is reflected in earnings per share by use of the treasury stock method. In applying the treasury stock method for stock-based compensation arrangements, the assumed proceeds are computed as the sum of the amount the employee must pay upon exercise and the amounts of average unrecognized compensation costs attributed to future services.

	Three Months Ended		Three Months Ended
	September 30, 2016		September 30, 2015
Basic net income per share computation:
Net income	$	272,055	$	199,466
Weighted-average common shares outstanding		3,255,887		3,256,887
Basic net income per share	$	0.08	$	0.06
Diluted net income per share computation
Net income	$	272,055	$	199,466
Less: Change in fair value of warrants		34,000		-
Diluted income	$	238,055		199,466
Weighted-average common shares outstanding		3,255,887		3,256,887
Incremental shares attributable to the assumed exercise of outstanding stock options and warrants		10,246		3,912
Total adjusted weighted-average shares		3,266,133		3,260,799
Diluted net income per share	$	0.07	$	0.06

	Six Months Ended		Six Months Ended
	September 30, 2016		September 30, 2015
Basic net income per share computation:
Net income	$	682,364	$	478,532
Weighted-average common shares outstanding		3,255,887		3,256,887
Basic net income per share	$	0.21	$	0.15
Diluted net income per share computation
Net income	$	682,364	$	478,532
Change in fair value of warrants		33,000		-
Diluted income	$	649,364		478,532
Weighted-average common shares outstanding		3,255,887		3,256,887
Incremental shares attributable to the assumed exercise of outstanding stock options and warrants		11,305		5,171
Total adjusted weighted-average shares		3,267,192		3,262,058
Diluted net income per share	$	0.20	$	0.15

The following table summarizes securities that, if exercised, would have an anti-dilutive effect on earnings per share:

	September 30, 2016		September 30, 2015
Stock options		75,000		99,500
Warrants		-		286,920
		75,000		386,420