11. EARNINGS (LOSS) PER SHARE

12 Months Ended

Sep. 30, 2019

Earnings (loss) per share:

EARNINGS PER SHARE

NOTE 11        EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share data for each period presented is computed using the weighted average number of shares of common stock outstanding during each such period. Diluted earnings (loss) per share data is computed using the weighted average number of common and dilutive common equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of (i) shares that would be issued upon the exercise of stock options and warrants, computed using the treasury stock method, and (ii) shares of nonvested restricted stock. The Company calculated the potential diluted earnings per share in accordance with ASC 260, as follows:

	For the Fiscal Years Ended
	September 30,
	2019			2018
Numerator:
Net income (loss) (numerator for basic and diluted earnings (loss) per share)	$	(3,604,030	)	$	1,379,320
Weighted average shares outstanding (denominator for basic earnings (loss) per share)		9,532,034			9,264,670
Effects of dilutive securities:
Assumed exercise of stock options, treasury stock method		–			36,621
Assumed vesting of restricted stock, treasury stock method		–			53,378
Dilutive potential common shares		–			89,999
Denominator for diluted earnings (loss) per share - weighted average shares and assumed potential common shares		9,532,034			9,354,669
Basic earnings (loss) per share	$	(0.38	)	$	0.15
Diluted earnings (loss) per share	$	(0.38	)	$	0.15

The following securities were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive:

	As of September 30,
	2019		2018
Options		812,879		469,566
Warrants		151,335		151,335
Total potentially dilutive shares		964,214		620,901