NET INCOME PER COMMON SHARE

3 Months Ended

Sep. 30, 2021

NET INCOME PER COMMON SHARE [Abstract]

NET INCOME PER COMMON SHARE

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 September 30,
	2021		2020
Numerator:
Net income	$	827,025	$	874,266
Denominator:
Weighted average common shares outstanding:
Basic		29,971,178		28,786,910
Effect of dilutive securities		1,126,362		52,987
Diluted		31,097,540		28,839,897
Net income per common share:
Basic	$	0.03	$	0.03
Diluted	$	0.03	$	0.03

For the three months ended September 30, 2021 and 2020, stock options to purchase approximately 934,000 and 2.79 million shares, respectively, were excluded from the computation of diluted net income per common share because the exercise price of the stock options 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 shares of unvested restricted stock are excluded from the computation of diluted net income per common share as of each of September 30, 2021 and 2020, because the shares are performance-based and the underlying conditions have not been met as of the periods presented.