Net Income (Loss) per Share (Tables)

3 Months Ended

Jun. 30, 2024

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Net income (loss) per share has been computed according to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC 260”), “Earnings per Share,” which requires a dual presentation of basic and diluted income per share (“EPS”). Basic EPS represents net income (loss) divided by the weighted average number of common shares outstanding during a reporting period. Diluted EPS to common stockholders reflects the potential dilution that could occur if securities, including preferred stock and options, were converted into common stock. The dilutive effect of outstanding options is reflected in earnings per share by use of the treasury stock method. The dilutive effect of preferred stock is reflected in earnings per share by use of the if-converted method. In applying the treasury stock method for stock-based compensation arrangements, the assumed proceeds are computed as the sum of the amount the employee must pay upon exercise and the amounts of average unrecognized compensation. For the three months ended June 30, 2024, since the Company has a net loss attributable to common shareholders, the effect of common stock equivalents is anti-dilutive, and as such, common stock equivalents have been excluded from this calculation.

	Three Months Ended			Three Months Ended
	June 30, 2024			June 30, 2023
Basic net income (loss) per share computation:
Net income	$	42,248		$	295,292
Less: Preferred dividends		(94,420	)		(80,000	)
Net income (loss) attributable to common shareholders		(52,172	)		215,292
Weighted-average common shares outstanding		3,255,887			3,255,887
Basic net income (loss) per share	$	(0.02	)	$	0.07
Diluted net income (loss) per share computation
Net income (loss) attributable to common shareholders	$	(52,172	)	$	215,292
Add: Preferred dividends		-			80,000
Diluted net income (loss) attributable to common shareholders	$	(52,172	)	$	295,292
Weighted-average common shares outstanding		3,255,887			3,255,887
Incremental shares attributable to the assumed conversion of preferred stock		-			1,959,778
Total adjusted weighted-average shares		3,255,887			5,215,665
Diluted net income (loss) per share	$	(0.02	)	$	0.06

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

The following table summarizes securities that, if exercised, would have an anti-dilutive effect on earnings per share for the three months ended:

	June 30, 2024		June 30, 2023
Convertible preferred stock		2,663,109		-
Stock options		33,000		99,000
		2,696,109		99,000

TEL INSTRUMENT ELECTRONICS CORP 10-Q