Net Income (Loss) per Share

3 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 11 – 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 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 to common stockholders reflects the potential dilution that could occur if securities, including preferred stock and options, were converted into common stock. The dilutive effect of outstanding 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. For the three months ended June 30, 2022, since the Company has a net loss, the effect of common stock equivalents is anti-dilutive, and as such, common stock equivalents have been excluded from this calculation.

	Three Months Ended			Three Months Ended
	June 30, 2023			June 30, 2022
Basic net income (loss) per share computation:
Net income (loss)	$	295,292		$	(232,869	)
Less: Preferred dividends		(80,000	)		(80,000	)
Net income (loss) attributable to common shareholders		215,292			(312,869	)
Weighted-average common shares outstanding		3,255,887			3,255,887
Basic net income (loss) per share	$	0.07		$	(0.10	)
Diluted net income (loss) per share computation
Net income (loss) attributable to common shareholders	$	215,292		$	(312,869	)
Add: Preferred dividends		80,000			-
Diluted net income (loss) attributable to common shareholders	$	295,292		$	(312,869	)
Weighted-average common shares outstanding		3,255,887			3,255,887
Incremental shares attributable to the assumed conversion of preferred stock		1,959,778			-
Total adjusted weighted-average shares		5,215,665			3,255,887
Diluted net income (loss) per share	$	0.06		$	(0.10	)

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

	June 30, 2023		June 30, 2022
Convertible preferred stock		-		1,839,778
Stock options		99,000		111,500
		99,000		1,951,278