Earnings Per Share

3 Months Ended

Dec. 31, 2021

Net Income Per Share

Earnings Per Share

5. Earnings Per Share

	Three Months Ended December 31,
	2021		2020
Numerator:
Net income	$	1,133,058	$	240,145
Denominator:
Basic weighted average shares		17,246,372		17,214,384
Dilutive effect of share-based awards		—		1,903
Diluted weighted average shares		17,246,372		17,216,287
Earnings per common share:
Basic EPS	$	0.07	$	0.01
Diluted EPS	$	0.07	$	0.01

Net income per share is calculated pursuant to ASC Topic 260, “Earnings per Share” (“ASC Topic 260”). Basic earnings per share (“EPS”) excludes potentially dilutive securities and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed assuming the conversion or exercise of all dilutive securities such as employee stock options and restricted stock units (“RSUs”).

The number of incremental shares from the assumed exercise of stock options and RSUs is calculated by using the treasury stock method. As of December 31, 2021 and 2020, there were 100,000 and 104,500 options to purchase common stock outstanding, respectively, and no shares subject to vesting of restricted stock units outstanding, respectively. The average outstanding diluted shares calculation excludes options with an exercise price that exceeds the average market price of shares during the period.

For the three-month periods ended December 31, 2021 and 2020, respectively, 100,000 and 100,000 diluted weighted-average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.