Earnings Per Share

3 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

4.  Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly to basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares had been issued. In the case of a net loss, diluted earnings per share is calculated in the same manner as basic EPS.

For the three months ended December 31, 2020 and 2019, options for 471,000 and 703,000 weighted average shares, respectively, were excluded from the diluted EPS calculations because they were anti-dilutive. These shares could become dilutive in the future.

A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share amounts):

	Three Months Ended December 31,
	2020		2019
Numerator:
Net income (loss) from continuing operations	$	719	$	(1,267	)
Net loss from discontinued operations	$	—	$	(665	)
Net income (loss)	$	719	$	(1,932	)
Denominator:
Weighted-average shares used to compute basic EPS		14,072		14,290
Common stock equivalents (1)		45		—
Weighted-average shares used to compute diluted EPS		14,117		14,290
Basic income (loss) per share from continuing operations	$	0.05	$	(0.09	)
Basic loss per share from discontinued operations	$	—	$	(0.05	)
Net income (loss) per basic share	$	0.05	$	(0.14	)
Diluted income (loss) per share from continuing operations	$	0.05	$	(0.09	)
Diluted loss per share from discontinued operations	$	—	$	(0.05	)
Net income (loss) per diluted share	$	0.05	$	(0.14	)

(1) The number of common stock equivalents is calculated using the treasury method and the average market price during the period.