Note 5 - Net Income per Share

9 Months Ended

Dec. 31, 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
	December 31, 2016		December 31, 2015
Basic net income per share computation:
Net income	$	141,513	$	226,586
Weighted-average common shares outstanding		3,255,887		3,256,887
Basic net income per share	$	0.04	$	0.07
Diluted net income per share computation
Net income	$	141,513	$	226,586
Less: Change in fair value of warrants		37,000		-
Diluted income	$	104,513		226,586
Weighted-average common shares outstanding		3,255,887		3,256,887
Incremental shares attributable to the assumed exercise of outstanding stock options and warrants		9,248		4,803
Total adjusted weighted-average shares		3,265,135		3,261,690
Diluted net income per share	$	0.03	$	0.07

	Nine Months Ended		Nine Months Ended
	December 31, 2016		December 31, 2015
Basic net income per share computation:
Net income	$	823,877	$	705,118
Weighted-average common shares outstanding		3,255,887		3,256,887
Basic net income per share	$	0.25	$	0.22
Diluted net income per share computation
Net income	$	823,877	$	705,118
Change in fair value of warrants		70,000		-
Diluted income	$	753,877		705,118
Weighted-average common shares outstanding		3,255,887		3,256,887
Incremental shares attributable to the assumed exercise of outstanding stock options and warrants		10,645		5,068
Total adjusted weighted-average shares		3,266,532		3,261,955
Diluted net income per share	$	0.23	$	0.22

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

	December 31, 2016		December 31, 2015
Stock options		71,000		80,000
Warrants		-		286,920
		71,000		366,920