EARNINGS PER SHARE

6 Months Ended

Dec. 31, 2020

Basic earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) by the weighted average number of common shares after considering the additional dilution related to common stock options and restricted stock. In computing diluted earnings per share, the outstanding common stock options are considered dilutive using the treasury stock method.

The Company’s restricted stock awards are treated as outstanding for earnings per share calculations since these shares have full voting rights and are entitled to participate in dividends declared on common shares, if any, and undistributed earnings. As participating securities, the shares of restricted stock are included in the calculation of basic and diluted EPS using the two-class method. For the periods presented, the amount of earnings allocated to the participating securities was not material.

The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per-share amounts):


	Three-Months Ended December 31,				Six-Months Ended December 31,
	2020		2019		2020		2019
Net income as reported	$	1,228	$	970	$	935	$	1,656

Weighted average common shares outstanding	16,497		16,225		16,444		16,185
Effect of dilutive stock options	432		78		431		51
Weighted average diluted common shares outstanding	16,929		16,303		16,875		16,236

Net income per common share

Basic and diluted	$	0.07	$	0.06	$	0.06	$	0.10

Employee stock options excluded from computation of dilutive income per share amounts because their effect would be anti-dilutive	—		616		25		645