Note 8 - Earnings Per Share

3 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 8. EARNINGS PER SHARE

The basic earnings per share (“EPS”) calculation excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution of EPS that could occur if options to issue common stock were exercised.

The following table sets forth the computation for basic and diluted EPS.

	Three Months Ended
	September 30,
(dollars in thousands, except per share data)	2022		2021
Net Income	$	118	$	2,390
Weighted average number of outstanding shares
Basic		14,948,688		15,030,115
Effect of dilutive securities
Stock options		587		1,084
Diluted		14,949,275		15,031,199
Earnings Per Share
Basic Net Income per Share	$	0.01	$	0.16
Diluted Net Income per Share	$	0.01	$	0.16

The diluted EPS calculation excludes the effect of stock options when their exercise prices exceed the average market price for the period, as their inclusion would be anti-dilutive. For the three months ended September 30, 2022, employee stock options for 229,000 were excluded from diluted EPS. For the three months ended September 30, 2021, employee stock options for 231,000 were excluded from diluted EPS.

During the three months ended September 30, 2022, and 2021, the Company repurchased class A shares on the open market. Upon repurchase, these shares are classified as treasury shares and are deducted from outstanding shares in the earnings per share calculation.