Earnings (Loss) Per Common Share

9 Months Ended

Jun. 30, 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 three and nine months ended June 30, 2016 and 2015, no common stock options were included in the calculation of dilutive shares as all of the 123,147 and 58,212 common stock options outstanding, respectively, had exercise prices above the current quarterly average market price per share and their inclusion would be anti-dilutive.

For the three months ended June 30, 2016 and 2015, 3,532 and 7,451 shares of common stock related to restricted stock, respectively, were included in the denominator used to calculate diluted earnings per share. For the nine months ended June 30, 2016, 42,737 shares of common stock related to restricted stock were included in the denominator used to calculate diluted earnings per share. For the nine months ended June 30, 2015, no common share equivalents related to stock options or 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 June 30, 2016 and 2015 is as follows:

	June 30, 2016		June 30, 2015
Weighted average shares outstanding
Basic		16,698,205		16,439,637
Effect of dilutive securities
Stock Options		-		-
Restricted Stock		3,532		7,451
Dilutive Average Shares Outstanding		16,701,737		16,447,088

The computation of the weighted shares outstanding for the nine months ended June 30, 2016 and 2015 is as follows:

	June 30, 2016		June 30, 2015
Weighted average shares outstanding
Basic		16,628,279		16,368,313
Effect of dilutive securities
Stock Options		-		-
Restricted Stock		42,737		-
Dilutive Average Shares Outstanding		16,671,016		16,368,313