Note 8 – 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 outstanding. 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 six months ended March 31, 2018 and 2017, no common stock options were included in the calculation of dilutive shares as all of the 160,537 and 196,769 common stock options outstanding, respectively, had exercise prices above the applicable period’s average market price per share and their inclusion would be anti-dilutive. For the three and six months ended March 31, 2018 and 2017, 40,000 and 70,000 shares of restricted common stock, respectively, were excluded from the calculation of dilutive shares, as the effect of their inclusion would be anti-dilutive. Additionally, for the three months ended March 31, 2017, 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 March 31, 2018 and 2017 is as follows:

	March 31, 2018		March 31, 2017
Weighted average shares outstanding
Basic		17,133,468		16,886,628
Effect of dilutive securities
Stock Options		-		-
Restricted Stock		-		-
Dilutive Average Shares Outstanding		17,133,468		16,886,628

The computation of the weighted shares outstanding for the six months ended March 31, 2018 and 2017 is as follows:

	March 31, 2018		March 31, 2017
Weighted average shares outstanding
Basic		17,090,530		16,847,679
Effect of dilutive securities
Stock Options		-		-
Restricted Stock		-		-
Dilutive Average Shares Outstanding		17,090,530		16,847,679