Net Income Per Share

12 Months Ended

Sep. 30, 2023

Net Income Per Share

Net Income Per Share

6.  Net Income Per Share

	For the Fiscal Year Ended September 30,
	2023		2022		2021
Numerator:
Net income	$	6,027,755	$	5,523,778	$	5,064,902
Denominator:
Basic weighted average shares		17,411,684		17,256,750		17,225,423
Dilutive effect of share-based awards		7,501		1,121		1,197
Diluted weighted average shares		17,419,185		17,257,871		17,226,620
Net income per common share:
Basic	$	0.35	$	0.32	$	0.29
Diluted	$	0.35	$	0.32	$	0.29

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, 2023, 2022 and 2021, there were 224,000, 57,584 and 100,000 options to purchase common stock outstanding, respectively. As of September 30, 2023, 2022 and 2021, there were 101,968, 7,886 and 0 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 year 2023 and 2022, 203,000 options and 0 options to purchase common stock were excluded from the computation of diluted earnings per share because the effect would be anti-dilutive. For fiscal year 2021, 100,000 shares were excluded from the calculation of earnings per share as their effect would be anti-dilutive.