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 the three and nine months ended June 30, 2019 and 2018, no common share equivalents related to stock options were included in the calculation of dilutive shares, as all of the 95,602 and 160,537 common stock options outstanding, respectively, had exercise prices above the applicable period’s average market price per share and the inclusion of common share equivalents would be anti-dilutive. Additionally, for the three and nine months ended June 30, 2019 and 2018, 25,000 and 60,000 shares of restricted common stock were excluded from the calculation of dilutive shares, respectively, as the effect of their inclusion would be anti-dilutive.

The computation of the weighted shares outstanding for the three months ended June 30, 2019 and 2018 is as follows:


	June 30, 2019	June 30, 2018
Weighted average shares outstanding
Basic	17,522,644	17,203,965
Effect of dilutive securities
Stock Options	—	—
Restricted Stock	—	17,234
Dilutive Average Shares Outstanding	17,522,644	17,221,199

The computation of the weighted shares outstanding for the nine months ended June 30, 2019 and 2018 is as follows:


	June 30, 2019	June 30, 2018
Weighted average shares outstanding
Basic	17,426,316	17,127,834
Effect of dilutive securities
Stock Options	—	—
Restricted Stock	—	19,394
Dilutive Average Shares Outstanding	17,426,316	17,147,228