Basic and Diluted Net Income (Loss) per Share

6 Months Ended

Dec. 31, 2015

Basic and Diluted Net Income (Loss) per Share

4.	Basic and Diluted Net Income (Loss) per Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during each year. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares including dilutive common share equivalents. Under the treasury stock method, incremental shares representing the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued are included in the computation. Common share equivalents of 187,332 and 142,601 for the three months ended December 31, 2015 and 2014, respectively, were excluded from the calculation as their effect was anti-dilutive. Common share equivalents of 123,733 and 193,151 for the six months ended December 31, 2015 and 2014, respectively, were excluded from the calculation as their effect was anti-dilutive.

The following table presents a reconciliation of the numerators and denominators of basic and diluted net income per share for the periods indicated:

	Three Months Ended December 31,				Six Months Ended December 31,
	2015		2014		2015		2014

Basic and diluted EPS calculation:
Net income (loss)	$	(283)	$	(543)	$	2,924	$	(156)

Basic weighted average number of shares outstanding		9,161,407		9,087,962		9,137,149		9,038,857
Effect of dilutive securities:
Employee stock options		-		-		-		-
Restricted shares		-		-		63,950		-
Diluted weighted average number of shares outstanding		9,161,407		9,087,962		9,201,099		9,038,857

Basic EPS	$	(0.03)	$	(0.06)	$	0.32	$	(0.02)

Diluted EPS	$	(0.03)	$	(0.06)	$	0.32	$	(0.02)