15. Net Diluted Income (Loss) per Share

Net income (loss) per share has been computed according to FASB ASC 260, “Earnings per Share,” which requires a dual presentation of basic and diluted earnings (loss) per share (“EPS”). Basic EPS represents net (loss) income 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.

	March 31, 2017			March 31, 2016
Basic net (loss) income per share computation:
Net (loss) income	$	(4,759,439	)	$	1,004,153
Weighted-average common shares outstanding		3,255,887			3,256,887
Basic net (loss) income per share	$	(1.46	)	$	0.31
Diluted net (loss) income per share computation
Net (loss) income	$	(4,759,439	)	$	1,004,153
Less: Change in fair value of warrants		103,000			-
Diluted (loss) income		(4,862,439	)		1,004,153
Weighted-average common shares outstanding		3,255,887			3,256,887
Incremental shares attributable to the assumed exercise of outstanding stock options and warrants		10,955			4,266
Total adjusted weighted-average shares		3,266,842			3,261,153
Diluted net (loss) income per share	$	(1.49	)	$	0.31

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

	March 31, 2017		March 31, 2016
Stock options		61,000		65,000
Warrants		-		286,920
		61,000		351,920