Note

Earnings

(Loss) Per

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share (“diluted EPS”) is computed similarly to basic earnings (loss) per share, except that it includes the potential dilution that could occur if dilutive securities were exercised. Potentially dilutive securities include common shares related to stock options and RSUs (collectively “stock awards”). Stock awards are excluded from the calculation of diluted EPS in the event that they are subject to performance conditions that have

not

yet been achieved or are antidilutive. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an antidilutive effect. There was

dilution in our diluted EPS calculation for the

three

months ended

December 31, 2019

because we incurred a net loss and the effect would have been antidilutive.

The impact of the assumed conversion of the Notes calculated under the if-converted method was anti-dilutive, and as such shares underlying the Notes were excluded from the diluted EPS calculation for the

three

and

nine

month period ended

December 31, 2019.

The following table presents a reconciliation of the denominators used in the computation of basic and diluted earnings (loss) per share (shares in thousands):

	Three Months Ended December 31,					Nine Months Ended December 31,
	2019			2018		2019		2018
Net (loss) income available for shareholders	$	(4,630	)	$	858	$	3,029	$	6,082
Weighted average outstanding shares of common stock		4,367			3,855		4,142		3,840
Dilutive effect of stock options		--			180		251		182
Dilutive effect of non-vested shares		--			10		25		15
Fully diluted shares		4,367			4,045		4,418		4,037

Basic	$	(1.06	)	$	0.22	$	0.73	$	1.58
Diluted	$	(1.06	)	$	0.21	$	0.69	$	1.51

The following stock awards were excluded from the calculation of diluted EPS:

	Three Months Ended December 31,				Nine Months Ended December 31,
	2019		2018		2019		2018
Assumed conversion of convertible debt		608		--		318		--
Stock awards that were anti-dilutive		343		1		22		23
Stock awards subject to performance conditions		21		10		15		9
Total stock awards excluded from diluted EPS		972		11		355		32