Net Income Per Share

12 Months Ended

Sep. 30, 2021

Net Income Per Share

Net Income Per Share

4.  Net Income Per Share

	For the Fiscal Year Ended September 30,
	2021		2020		2019
Numerator:
Net income	$	5,064,902	$	3,269,783	$	1,850,296
Denominator:
Basic weighted average shares		17,225,423		16,939,302		16,867,550
Dilutive effect of share-based awards		1,197		174,889		74,897
Diluted weighted average shares		17,226,620		17,114,191		16,942,447
Net income per common share:
Basic	$	0.29	$	0.19	$	0.11
Diluted	$	0.29	$	0.19	$	0.11

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, 2021, 2020 and 2019, there were 100,000, 104,500 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 2021 and 2020, 100,000 shares, respectively were excluded from the calculation of earnings per share as their effect would be anti-dilutive. For fiscal year 2019, all options to purchase common stock were excluded from the computation of diluted earnings per share because the effect would be anti-dilutive.