Earnings Per Share

9 Months Ended

Jun. 30, 2015

5. Earnings Per Share

	Three Months Ended June 30,					Nine Months Ended June 30,
	2015			2014		2015			2014
Numerator:
Net income (loss)	$	(3,531,973	)	$	497,030	$	(3,302,322	)	$	2,289,842
Denominator:
Basic weighted average shares	16,910,475			16,951,360		16,930,522			16,918,423
Dilutive effect of share-based awards	—			226,212		—			223,109

Diluted weighted average shares	16,910,475			17,177,572		16,930,522			17,141,532


Earnings per common share:
Basic EPS	$	(0.21	)	$	0.03	$	(0.20	)	$	0.14

Diluted EPS	$	(0.21	)	$	0.03	$	(0.20	)	$	0.13

Earnings per share (“EPS”) are calculated pursuant to FASB ASC Topic 260, Earnings Per Share (“ASC Topic 260”). Basic EPS excludes potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed assuming the conversion or exercise of all dilutive securities such as employee stock options.

The number of incremental shares from the assumed exercise of stock options is calculated by using the treasury stock method. As of June 30, 2015 and 2014, there were 667,168 and 715,002 options to purchase common stock outstanding, respectively. The average outstanding diluted shares calculation excludes options with an exercise price that exceeds the average market price of shares during the period.

For the three months ended June 30, 2015 and 2014, respectively, 400,641 and 57,500 diluted weighted-average-shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.

For the nine months ended June 30, 2015 and 2014, respectively, 402,063 and 66,533 diluted weighted-average-shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.