Net Income per Share

6 Months Ended

Sep. 30, 2020

11. Net Income per Share

Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share includes the effect, if any, from the potential exercise or conversion of securities, such as stock options, which would result in the issuance of incremental shares of common stock to the extent such impact is not anti-dilutive.

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

	Three Months Ended September 30,				Six Months Ended September 30,
	2020		2019		2020		2019
Net income	$	15,184,000	$	6,189,000	$	12,172,000	$	38,000
Basic shares		19,022,414		18,903,182		18,999,461		18,862,901
Effect of potentially dilutive securities		322,897		314,145		290,304		383,698
Diluted shares		19,345,311		19,217,327		19,289,765		19,246,599
Net income per share:

Basic net income per share	$	0.80	$	0.33	$	0.64	$	0.00

Diluted net income per share	$	0.78	$	0.32	$	0.63	$	0.00

Potential common shares that would have the effect of increasing diluted net income per share or decreasing diluted net loss per share are considered to be anti-dilutive and as such, these shares are not included in calculating diluted net income per share. For the three months ended September 30, 2020 and 2019, there were 1,500,066 and 1,221,744 respectively, of potential common shares not included in the calculation of diluted net income per share because their effect was anti-dilutive. For the six months ended September 30, 2020 and 2019, there were 1,500,066 and 1,166,432, respectively, of potential common shares not included in the calculation of diluted net income per share because their effect was anti-dilutive.