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CAPITAL STOCK and EARNINGS PER SHARE

12 Months Ended

Mar. 31, 2024

CAPITAL STOCK and EARNINGS PER SHARE

CAPITAL STOCK and EARNINGS PER SHARE

NOTE 6 – CAPITAL STOCK and EARNINGS PER SHARE

Reverse Stock Split

On February 23, 2023, the Company effected a one-for-four reverse stock split of its common stock, which was effective for trading purposes as of the commencement of trading on February 24, 2023. The reverse stock split was approved by the Company’s stockholders on September 14, 2022, at the Company’s regular annual meeting of stockholders, with authorization to determine the final ratio having been granted to the Company’s Board of Directors.

All share and per-share amounts have been affected retroactively for all years presented in our financial statements and notes thereto.

The reverse stock split was primarily intended to prepare for the potential listing of the Company’s common stock on the Nasdaq Capital Market. The Company simultaneously affected a reduction in the number of authorized shares of common stock from 90,000,000 to 50,000,000.

Common Stock

We had 50,000,000 authorized shares of common stock at March 31, 2024 and 2023, respectively. There were 8,777,432 and 8,613,408 shares of common stock outstanding at March 31, 2024 and 2023, respectively.

Preferred Stock

We have 10,000,000 authorized shares of preferred stock and our board of directors has broad power to create one or more series of preferred stock and to designate the rights, preferences, privileges, and limitations of the holders of such series. There were no shares of preferred stock outstanding at March 31, 2024 and 2023.

Earnings per Share

All earnings per share amounts included in this annual report on Form 10-K are presented as if the one-for-four reverse stock split had been effective April 1, 2022. Basic EPS is computed by dividing reported earnings available to stockholders by the weighted average shares outstanding. Diluted EPS also includes the effect of stock options that would be dilutive. The following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations, as required under FASB ASC 260.


		March 31,			March 31,
		2024			2023
Basic EPS
Net loss		$	(7,042,172)		$	(979,006)
Weighted average shares			8,717,160			8,595,992
Net loss per share		$	(0.81)		$	(0.11)
Diluted EPS
Net loss		$	(7,042,172)		$	(979,006)
Dilutive effect of stock options			—			—
Weighted average shares			8,717,160			8,595,992
Net loss per share		$	(0.81)		$	(0.11)

All potential common stock equivalents that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS due to net loss for both periods. For the fiscal years ended March 31, 2024, and 2023, there were potential anti-dilutive stock options and warrants of 542,500 and 25,000, and 680,000 and 25,000, respectively, none of which were included in the EPS calculations above.