Earnings (Loss) Per Common Share

9 Months Ended

Jun. 30, 2018

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 nine months ended June 30, 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 both the three and nine months ended June 30, 2017, 70,000 shares of unvested restricted common stock were excluded from the calculation of dilutive shares, as the effect of their inclusion would be anti-dilutive. Additionally, for the three months ended June 30, 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 June 30, 2018 and 2017 is as follows:

	June 30, 2018		June 30, 2017
Weighted average shares outstanding
Basic		17,203,965		16,945,744
Effect of dilutive securities
Stock Options		-		-
Restricted Stock		17,234		-
Dilutive Average Shares Outstanding		17,221,199		16,945,744

The computation of the weighted shares outstanding for the nine months ended June 30, 2018 and 2017 is as follows:

	June 30, 2018		June 30, 2017
Weighted average shares outstanding
Basic		17,127,834		16,879,864
Effect of dilutive securities
Stock Options		-		-
Restricted Stock		19,394		-
Dilutive Average Shares Outstanding		17,147,228		16,879,864