Earnings Per Share of Common Stock

9 Months Ended

Jun. 30, 2022

Earnings Per Share of Common Stock

Earnings Per Share of Common Stock

5.            Earnings Per Share of Common Stock

Basic net income (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per common share reflects the maximum dilution that would have resulted from the assumed exercise and share repurchase related to dilutive stock options and is computed by dividing net income (loss) by the assumed weighted average number of common shares outstanding.

We are required to present earnings per share (“EPS”), utilizing the two class method because we had outstanding, non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, which are considered participating securities.

Basic and diluted earnings per share computations for the Company’s reported net loss attributable to common stockholders are as follows:

	Three months ended				Nine months ended
	June 30,		June 30,		June 30,		June 30,
	2022		2021		2022		2021
	(Amounts in thousands except per share data)
Net income (loss)	$	684	$	(423)	$	474	$	(119)
Less: net income attributable to nonvested common stock		38		—		24		—
Net income (loss) attributable to common shareholders	$	646	$	(423)	$	450	$	(119)
Weighted average total shares outstanding – basic		4,535		4,179		4,481		4,137
Less: weighted average non–vested shares outstanding		255		—		230		—
Weighted average number of common shares outstanding – basic		4,280		4,179		4,251		4,137
Add: potential common shares from non–vested stock awards and the assumed exercise of stock options		3		—		14		—
Weighted average common shares outstanding – diluted		4,283		4,179		4,265		4,137
Net income (loss) per common share - basic	$	0.15	$	(0.10)	$	0.11	$	(0.03)
Net income (loss) per common share - diluted	$	0.15	$	(0.10)	$	0.11	$	(0.03)

All anti-dilutive securities, including certain stock options, are excluded from the diluted income (loss) per share computation. There are no outstanding stock options as of June 30, 2022 as they expired in the second quarter of fiscal year 2022. Non-vested restricted stock awards of 208 thousand and 209 thousand were excluded from the diluted loss per share calculation for the three and nine months ended June 30, 2021, respectively. These awards were excluded because there was a net loss for this period and their inclusion would have been anti-dilutive.