17. 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, 2019			March 31, 2018
Basic net income (loss) per share computation:
Net income (loss)	$	203,038		$	(4,322,311	)
Add: Deemed dividend related to beneficial conversion feature of Series B Convertible Preferred Stock		(420,000	)		-
Add: Preferred dividends		(312,807	)		(90,667	)
Net loss attributable to common shareholders		(529,769	)		(4,412,978	)
Weighted-average common shares outstanding		3,255,887			3,255,887
Basic net loss per share	$	(0.16	)	$	(1.36	)
Diluted net income (loss) per share computation
Net income (loss)	$	203,038		$	(4,322,311	)
Add: Deemed dividend related to beneficial conversion feature of Series B Convertible Preferred Stock		(420,000	)		-
Add: Preferred dividends		(312,807	)		(90,667	)
Diluted loss attributable to common shareholders	$	(529,769	)		(4,412,978	)
Weighted-average common shares outstanding		3,255,887			3,255,887
Incremental shares attributable to the assumed exercise of preferred stock, outstanding stock options and warrants		-			-
Total adjusted weighted-average shares		3,255,887			3,255,887
Diluted net loss per share	$	(0.16	)	$	(1.36	)

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

	March 31, 2019		March 31, 2018
Convertible preferred stock		1,629,778		1,030,222
Stock options		42,500		72,500
Warrants		50,000		50,000
		1,722,278		1,152,722