7. EARNINGS/(LOSS) PER SHARE

3 Months Ended

Dec. 31, 2020

Earnings/(loss) per share:

EARNINGS/(LOSS) PER SHARE

NOTE 7                  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 shares that would be issued upon the exercise of stock options and warrants, computed using the treasury stock method. A reconciliation of basic and diluted earnings/(loss) per share is as follows:

	For the Three Months Ended December 31,
	2020		2019
Numerator:
Net income/(loss)	$	1,199,000	$	(82,000	)
Denominator:
Weighted-average common shares outstanding		9,886,000		9,534,000
Dilutive common share equivalents		154,000		–
Weighted-average diluted shares outstanding		10,040,000		9,534,000
Earnings/(loss) per share:
Basic	$	0.12	$	(0.01	)
Diluted	$	0.12	$	(0.01	)

The following securities were excluded from the calculation of diluted earnings/(loss) per share in each period because their inclusion would have been anti-dilutive:

	For the Three Months Ended December 31,
	2020		2019
Options		136,000		811,000
Warrants		151,000		151,000
Total potentially dilutive shares		287,000		962,000