4. NET INCOME PER SHARE:
Basic net income per common share is computed based on the weighted average number of common shares outstanding and on the weighted
average number of common shares and share equivalents (stock options) outstanding for diluted earnings per share. The weighted average number of shares outstanding used in the computation of diluted net earnings per share does not include the effect
of potentially outstanding common stock whose effect would have been antidilutive. Such outstanding potential shares consisted of options totaling 40,000 and 0 shares for the three and six months ended October 31, 2012 and 2011, respectively.