Earnings Per Share

9 Months Ended

Jun. 30, 2024

Earnings Per Share

Earnings Per Share

5. Earnings Per Share

	Three Months Ended June 30,				Nine Months Ended June 30,
	2024		2023		2024		2023
Numerator:
Net income	$	1,552,520	$	1,423,379	$	3,818,186	$	3,393,133
Denominator:
Basic weighted average shares		17,461,652		17,576,969		17,455,903		17,415,358
Dilutive effect of share-based awards		5,607		619		20,186		3,907
Diluted weighted average shares		17,467,259		17,577,588		17,476,089		17,419,265
Net income per common share:
Basic	$	0.09	$	0.08	$	0.22	$	0.19
Diluted	$	0.09	$	0.08	$	0.22	$	0.19

Net income per share is calculated pursuant to ASC Topic 260, “Earnings per Share”. 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 June 30, 2024 and 2023, there were 361,613 and 128,815 options to purchase common stock outstanding, respectively, and 250,975 and 76,636 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 June 30, 2024 and 2023, respectively, 529,918 and 312,210 diluted weighted-average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.

For the nine-month periods ended June 30, 2024 and 2023, respectively, 329,026 and 196,577 diluted weighted-average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.