Earnings Per Share

3 Months Ended

Dec. 31, 2020

EARNINGS PER SHAREBasic net (loss) income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares result from dilutive common stock options and restricted stock units. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common shares. All potentially dilutive common equivalent shares are excluded from the calculations of net loss per diluted share due to their anti-dilutive effect for the three months ended December 31, 2020.

3. EARNINGS PER SHARE (CONTINUED)

The following table is a reconciliation of the numerators and denominators in the net (loss) income per common share calculations (in thousands, except per common share data):


	Three months ended December 31,
		2020		2019
Numerator:


Net (loss) income		$	(307)	$	208

Denominator:
Denominator for basic net (loss) income per common share — weighted average shares outstanding		29,374		28,467
Effect of dilutive securities:
Stock options and restricted stock units		—		1,147
Denominator for diluted net (loss) income per common share — adjusted weighted average shares		29,374		29,614




Net (loss) income per common share, basic		$	(0.01)	$	0.01



Net (loss) income per common share, diluted		$	(0.01)	$	0.01

For the three months ended December 31, 2020 and 2019, there were 547,045 and 594,447 potentially dilutive shares, respectively. These potentially dilutive shares were related to stock options to purchase common shares that were not included in the above computation of diluted earnings per common share since the options' exercise prices were greater than the average market price of our common shares. In addition, due to the net loss for the three months ended December 31, 2020, there were 1,157,727 common stock options and restricted stock units that were not included in the above computation of diluted earnings per share.