Note 7 – Net Income (Loss) per Share

Net income (loss) 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 preferred stock, 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. The dilutive effect of preferred stock is reflected in earnings per share by use of the if-converted 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

	Three Months Ended			Three Months Ended
	December 31, 2019			December 31, 2018
Basic net income per share computation:
Net income	$	907,577		$	639,453
Deemed dividend related to beneficial conversion feature of Series B Convertible Preferred Stock		-			(420,000	)
Preferred dividends		(80,000	)		(112,807	)
Net income attributable to common shareholders	$	827,577		$	106,646
Weighted-average common shares outstanding		3,255,887			3,255,887
Basic net income per share	$	0.25		$	0.03
Diluted net income per share computation
Net income attributable to common shareholders	$	827,577		$	106,646
Add: Preferred dividends		80,000			-
Diluted income attributable to common shareholders	$	907,577		$	106,646
Weighted-average common shares outstanding		3,255,887			3,255,887
Incremental shares attributable to the assumed conversion of preferred stock, and exercise of outstanding stock options and warrants		1,719,778			-
Total adjusted weighted-average shares		4,975,665			3,255,887
Diluted net income (loss) per share	$	0.18		$	0.03

	Nine Months Ended			Nine Months Ended
	December 31, 2019			December 31, 2018
Basic net income (loss) per share computation:
Net income (loss)	$	1,701,587		$	(298,030	)
Deemed dividend related to beneficial conversion feature of Series B Convertible Preferred Stock		-			(420,000	)
Preferred dividends		(240,000	)		(232,807	)
Net income (loss) attributable to common shareholders	$	1,461,587		$	(950,837	)
Weighted-average common shares outstanding		3,255,887			3,255,887
Basic net income (loss) per share	$	0.45		$	(0.29	)
Diluted net income (loss) per share computation
Net income (loss) attributable to common shareholders	$	1,461,587		$	(950,837	)
Add: Preferred dividends		240,000			-
Diluted income (loss) attributable to common shareholders	$	1,701,587		$	(950,837	)
Weighted-average common shares outstanding		3,255,887			3,255,887
Incremental shares attributable to the assumed conversion of preferred stock, and exercise of outstanding stock options and warrants		1,568,765			-
Total adjusted weighted-average shares		4,824,652			3,255,887
Diluted net income (loss) per share	$	0.35		$	(0.29	)

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

	December 31, 2019		December 31, 2018
Convertible preferred stock		-		1,599,778
Stock options		118,500		42,500
Warrants		-		50,000
		118,500		1,692,278