Net Income Per Share

12 Months Ended

Sep. 30, 2020

Net Income Per Share

Net Income Per Share

4.  Net Income Per Share

	For the Fiscal Year Ended  September 30,
	2020		2019		2018
Numerator:
Net income (loss)	$	3,269,783	$	1,850,296	$	(3,653,905)
Denominator:
Basicweighted average shares		16,939,302		16,867,550		16,805,991
Dilutive effect of share-based awards		174,889		74,897		—
Diluted weighted average shares		17,114,191		16,942,447		16,805,991
Net income (loss) per common share:
Basic	$	0.19	$	0.11	$	(0.22)
Diluted	$	0.19	$	0.11	$	(0.22)

Net income per share is calculated pursuant to ASC Topic 260, “Earnings per Share” (“ASC Topic 260”).  Basic earnings per share (“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 and restricted stock units (“RSUs”).

The number of incremental shares from the assumed exercise of stock options and RSUs is calculated by using the treasury stock method. As of September 30, 2020, 2019 and 2018, there were 104,500,  550,834 and 550,834 options to purchase common stock outstanding, respectively, and no shares subject to vesting of restricted stock units 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 fiscal years 2020 and 2019, 100,000 and 0 shares, respectively were excluded from the calculation of earnings per share as their effect would be anti-dilutive. For fiscal year 2018, all options to purchase common stock were excluded from the computation of diluted earnings per share because the effect would be anti-dilutive.