Earnings per Share Data

3 Months Ended

Dec. 31, 2015

Note 5 – Earnings per Share Data

The following table sets forth the computation of basic and diluted earnings (loss) per share for the quarters ended December 31, 2015 and 2014:


	December 31, 2015		December 31, 2014
Net income (loss)	$	1,575,000	$	(1,096,000	)

Common Shares:
Weighted-average common shares outstanding		9,538,000		9,519,000
Effect of dilutive stock options		79,000		—

Weighted-average diluted shares outstanding		9,617,000		9,519,000

Basic:
Net income (loss) per share	$	0.16	$	(0.12	)

Diluted:
Net income (loss) per share	$	0.16	$	(0.12	)

Basic earnings per share is based on the weighted-average number of shares outstanding. Diluted earnings per share is based on the sum of the weighted-average number of shares outstanding plus common stock equivalents. Weighted-average shares issuable upon the exercise of stock options included in the diluted earnings per share calculation for the quarter ended December 31, 2015 were 325,000, which equates to 79,000 dilutive common stock equivalents. For the quarter ended December 31, 2014, there were no common stock equivalents included in the diluted earnings per share calculations, as to do so would have been anti-dilutive. Weighted-average shares issuable upon the exercise of stock options, which were not included in the diluted earnings (loss) per share calculations because they were anti-dilutive, were zero for the quarter ended December 31, 2015 and 344,000 for the quarter ended December 31, 2014.