NET INCOME (LOSS) PER COMMON SHARE

9 Months Ended

Mar. 31, 2021

NET INCOME (LOSS) PER COMMON SHARE [Abstract]

NET INCOME (LOSS) PER COMMON SHARE

12. NET INCOME (LOSS) PER COMMON SHARE

Basic net income (loss) 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 (loss) per share presentations:

	Three Months Ended March 31,					Nine Months Ended March 31,
	2021		2020			2021		2020
Numerator:
Net income (loss)	$	1,036,227	$	(6,155,260	)	$	4,429,570	$	(5,133,891	)
Denominator:
Weighted average common shares outstanding:
Basic		29,320,434		28,656,910			28,967,946		28,625,723
Effect of dilutive securities		1,205,004		-			699,783		-
Diluted		30,525,438		28,656,910			29,667,729		28,625,723
Net income (loss) per common share:
Basic	$	0.04	$	(0.21	)	$	0.15	$	(0.18	)
Diluted	$	0.03	$	(0.21	)	$	0.15	$	(0.18	)

For the three- and nine-month periods ended March 31, 2021 stock options to purchase approximately 1.09 million shares, and 1.60 million shares, respectively, were excluded from the computation of diluted net income per common share for each respective financial reporting period then ended 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. For the three- and nine-month periods ended March 31, 2020, stock options to purchase approximately 2.54 million shares were excluded from the computation of diluted net loss per common share because the effect of inclusion of such amounts would be anti-dilutive to net loss 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 March 31, 2021 and 2020, respectively, because the shares are performance-based, and the underlying conditions have not been met as of the periods presented.