Note 8 - Earnings Per Share

9 Months Ended

Mar. 31, 2023

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.

	Nine Months Ended				Three Months Ended
	March 31,				March 31,
(dollars in thousands, except per share data)	2023		2022		2023		2022
Net Income (Loss)	$	2,616	$	5,134	$	1,640	$	(846	)
Weighted average number of outstanding shares
Basic		14,862,893		15,020,920		14,747,537		15,010,630
Effect of dilutive securities
Stock options		295		1,023		100		952
Diluted		14,863,188		15,021,943		14,747,637		15,011,582
Earnings Per Share
Basic Net Income (Loss) per share	$	0.18	$	0.34	$	0.11	$	(0.06	)
Diluted Net Income (Loss) per share	$	0.18	$	0.34	$	0.11	$	(0.06	)

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 and nine months ended March 31, 2023, employee stock options for 229,000 were excluded from diluted EPS. For the three and nine months ended March 31, 2022, employee stock options for 231,000 were excluded from diluted EPS.

During the three and nine months ended March 31, 2023, and 2022, 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.