Net Income per Share

6 Months Ended

Sep. 30, 2021

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,
	2021		2020		2021		2020
Net income	$	3,683,000	$	15,184,000	$	4,544,000	$	12,172,000
Basic shares		19,135,356		19,022,414		19,094,904		18,999,461
Effect of potentially dilutive securities		484,418		322,897		543,141		290,304
Diluted shares		19,619,774		19,345,311		19,638,045		19,289,765
Net income per share:
Basic net income per share	$	0.19	$	0.80	$	0.24	$	0.64
Diluted net income per share	$	0.19	$	0.78	$	0.23	$	0.63

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, 2021 and 2020, there were 915,778 and 1,500,066, 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, 2021 and 2020, there were 707,660 and 1,500,066, respectively, of potential common shares not included in the calculation of diluted net income per share because their effect was anti-dilutive.