10. Net (Loss) Income Per Share

Basic net (loss) income per share is computed by dividing net (loss) income by the weighted average number of shares of common stock outstanding during the period. Diluted net (loss) income per share includes the effect, if any, from the potential exercise or conversion of securities, such as stock options and warrants, which would result in the issuance of incremental shares of common stock.

The following presents a reconciliation of basic and diluted net (loss) income per share:

	Three Months Ended December 31,					Nine Months Ended December 31,
	2017			2016		2017		2016

Net (loss) income	$	(6,806,000	)	$	11,110,000	$	7,121,000	$	27,761,000
Basic shares		19,069,152			18,675,125		18,814,967		18,587,946
Effect of potentially dilutive securities		-			766,140		585,777		811,911
Diluted shares		19,069,152			19,441,265		19,400,744		19,399,857
Net (loss) income per share:
Basic net (loss) income per share	$	(0.36	)	$	0.59	$	0.38	$	1.49
Diluted net (loss) income per share	$	(0.36	)	$	0.57	$	0.37	$	1.43

The effect of dilutive options excludes (i) 1,170,441 shares subject to options with exercise prices ranging from $4.17 to $34.17 per share for the three months ended December, 31, 2017, (ii) 292,415 shares subject to options with exercise prices ranging from $26.47 to $34.17 per share for the three months ended December, 31, 2016, (iii) 289,572 shares subject to options with exercise prices ranging from $28.68 to $34.17 per share for the nine months ended December 31, 2017, and (iv) 291,215 shares subject to options with exercise prices ranging from $28.68 to $34.17 per share for the nine months ended December 31, 2016, which were anti-dilutive.