Earnings (Loss) Per Common Share

6 Months Ended

Mar. 31, 2016

Note 9 – Earnings (Loss) Per Common Share

Basic earnings (loss) per common share is computed by dividing the net income or loss attributable to common shares by the weighted average number of common shares. Diluted earnings per common share adjusts basic earnings per share for the effects of common stock options, common stock warrants, convertible preferred stock and other potential dilutive common shares outstanding during the periods.

For purposes of computing diluted earnings per share for the six months ended March 31, 2016, no common stock options were included in the calculation of dilutive shares as all of the 123,147 common stock options outstanding had exercise prices above the applicable quarterly average market price per share and their inclusion would be anti-dilutive. Additionally, for the three months ended March 31, 2016 and 2015 and for the six months ended March 31, 2015, no common share equivalents related to stock options were included in the calculation of dilutive shares, since there was a loss attributable to common shareholders and the inclusion of common share equivalents would be anti-dilutive.

For the six months ended March 31, 2016, 56,532 shares of common stock related to restricted stock were included in the denominator used to calculate diluted earnings per share. Additionally, for the three months ended March 31, 2016 and 2015 and the six months ended March 31, 2015, no common share equivalents related to unvested restricted stock were included in the calculation of dilutive shares, since there was a loss attributable to common shareholders and the inclusion of common share equivalents would be anti-dilutive.

The computation of the weighted shares outstanding for the three months ended March 31, 2016 and 2015 is as follows:

	March 31, 2016		March 31, 2015
Weighted average shares outstanding
Basic		16,636,950		16,365,688
Effect of dilutive securities
Stock Options		-		-
Restricted Stock		-		-
Dilutive Average Shares Outstanding		16,636,950		16,365,688

The computation of the weighted shares outstanding for the six months ended March 31, 2016 and 2015 is as follows:

	March 31, 2016		March 31, 2015
Weighted average shares outstanding
Basic		16,594,074		16,333,295
Effect of dilutive securities
Stock Options		-		-
Restricted Stock		56,532		-
Dilutive Average Shares Outstanding		16,650,606		16,333,295