Earnings Per Share

6 Months Ended

Mar. 31, 2024

Earnings Per Share

Earnings Per Share

5. Earnings Per Share

	Three Months Ended March 31,				Six Months Ended March 31,
	2024		2023		2024		2023
Numerator:
Net income	$	1,208,316	$	1,271,103	$	2,265,666	$	1,969,754
Denominator:
Basic weighted average shares		17,456,120		17,352,340		17,453,741		17,334,553
Dilutive effect of share-based awards		31,407		1,690		27,476		5,551
Diluted weighted average shares		17,487,527		17,354,030		17,481,217		17,340,104
Net income per common share:
Basic	$	0.07	$	0.07	$	0.13	$	0.11
Diluted	$	0.07	$	0.07	$	0.13	$	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 March 31, 2024 and 2023, there were 297,014 and 25,000 options to purchase common stock outstanding, respectively, and 173,555 and 82,886 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 periods ended March 31, 2024 and 2023, respectively, 243,749 and 277,520 diluted weighted-average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.

For the six-month periods ended March 31, 2024 and 2023, respectively, 228,579 and 138,760 diluted weighted-average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.