NET INCOME PER COMMON SHARE

6 Months Ended

Dec. 31, 2020

NET INCOME PER COMMON SHARE [Abstract]

12.	NET INCOME PER COMMON SHARE

Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the periods. Diluted net income per common share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the periods. Common equivalent shares consist of stock options and unvested restricted shares that are computed using the treasury stock method. Anti-dilutive stock awards consist of stock options that would have been anti-dilutive in the application of the treasury stock method.

The following table reconciles the differences between the basic and diluted net income per share presentations:

	Three Months Ended December 31,				Six Months Ended December 31,
	2020		2019		2020		2019
Numerator:
Net income	$	2,519,077	$	814,050	$	3,393,343	$	1,021,369

Denominator:
Weighted average common shares outstanding:
Basic		28,804,265		28,656,910		28,795,424		28,610,299
Effect of dilutive securities		458,437		589,661		184,585		589,577
Diluted		29,262,702		29,246,571		28,980,009		29,199,876

Net income per common share:
Basic	$	0.09	$	0.03	$	0.12	$	0.04
Diluted	$	0.09	$	0.03	$	0.12	$	0.03

For the three and six months ended December 31, 2020 stock options to purchase approximately 2.53 million and 2.80 million shares, respectively, and for each of the three and six months ended December 31, 2019, stock options to purchase approximately 2.13 million shares were excluded from the computation of diluted net income per common share for each period presented herein. These shares are excluded from the computations of diluted net income per common share because the exercise price of the stock options for each of the periods presented was greater than the average market price of the common shares or the effect of inclusion of such amounts would be anti-dilutive to net income per common share. Approximately 179,000 and 325,000 shares of unvested restricted stock are excluded from the computation of diluted net income per common share as of December 31, 2020 and 2019, respectively, because the shares are performance-based and the underlying conditions have not been met as of the periods presented.