Earnings Per Share

6 Months Ended

Mar. 31, 2021

5. Earnings Per Share


	Three Months Ended March 31,				Six Months Ended March 31,
	2021		2020		2021		2020
Numerator:
Net income	$	608,577	$	438,105	$	848,722	$	766,013
Denominator:
Basic weighted average shares		17,222,165		16,931,138		17,218,275		16,920,087
Dilutive effect of share-based awards		1,833		192,250		1,868		182,396
Diluted weighted average shares		17,223,998		17,123,388		17,220,143		17,102,483

Earnings per common share:
Basic EPS	$	0.04	$	0.03	$	0.05	$	0.05
Diluted EPS	$	0.04	$	0.03	$	0.05	$	0.04

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 March 31, 2021 and 2020, there were 104,500 and 548,500 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 the three-month period ended March 31, 2021 and 2020, respectively, 100,000 and 0 diluted weighted-average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.

For the six-month period ended March 31, 2021 and 2020, respectively, 100,000 and 0 diluted weighted-average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.