5. Earnings Per Share


	Three Months Ended June 30,				Nine Months Ended June 30,
	2019		2018		2019		2018
Numerator:
Net income (loss)	$	511,259	$	(1,041,037)	$	853,179	$	(3,239,527)
Denominator:
Basic weighted average shares		16,880,341		16,816,838		16,860,503		16,800,070
Dilutive effect of share-based awards		98,302		—		37,818		—
Diluted weighted average shares		16,978,643		16,816,838		16,898,321		16,800,070

Earnings per common share:
Basic EPS	$	0.03	$	(0.06)	$	0.05	$	(0.19)
Diluted EPS	$	0.03	$	(0.06)	$	0.05	$	(0.19)

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, 2019 and 2018, there were 550,834 and 556,834 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, 2019 and 2018, respectively, 250,000 and 306,834 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, 2019 and 2018, respectively, 367,223 and 322,612 diluted weighted-average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.