EARNINGS PER SHARE (EPS)

6 Months Ended

Sep. 30, 2025

NOTE 5 – EARNINGS PER SHARE (EPS)

Basic EPS is computed by dividing reported earnings available to stockholders by the weighted average number of shares outstanding. Diluted EPS also includes the effect of stock options and restricted stock 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 for the periods indicated:


	Three Months ended		Three Months ended		Six Months ended		Six Months ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Basic and diluted EPS
Net income (loss)	$	825	$	(601)	$	228	$	(2,061)
Net income (loss) per share – basic and diluted	$	0.08	$	(0.06)	$	0.02	$	(0.22)
Weighted average shares – basic		9,874,627		9,568,660		9,816,556		9,279,967
Dilutive effect of stock options		280,938		—		212,611		—
Weighted average shares – diluted		10,155,565		9,568,660		10,029,167		9,279,967

The following table depicts all potential common stock equivalents that have an anti-dilutive effect were excluded from the calculation of diluted EPS (i.e., those that increase income per share or decrease loss per share), for the periods indicated:


	Three Months ended	Three Months ended	Six Months ended	Six Months ended
	September 30, 2025	September 30, 2024	September 30, 2025	September 30, 2024
Stock options	—	542,500	—	542,500
Warrants	711,083	566,783	711,083	566,783
Restricted stock	5,000	10,000	5,000	10,000

From time to time, we may enter into contracts that are indexed to and settled in our own stock, such as warrants. Contracts that require settlement in shares are equity instruments and measured at fair value. Subsequent changes in fair value are not recognized if the contracts continue to be classified as equity. In connection with the sale of our common stock and warrants to purchase shares of our common stock in fiscal 2025 in a private placement, we recorded the sale of common stock and warrants as shareholder’s equity at a combined purchase price of $3.46. The portion of the proceeds received for the stock and warrant that are allocable to the warrant was accounted for as additional paid-in-capital. The allocation was based on the relative fair market values of the two securities at the time of issuance.

TECHPRECISION CORP 10-Q