Note

– Earnings Per Share

Basic earnings per share are based on the sum of the average number of common shares outstanding and issuable, restricted and deferred shares. Diluted earnings per share include any dilutive effect of stock options and restricted stock. In computing the diluted weighted average shares, the average share price for the period is used in determining the number of shares assumed to be reacquired under the treasury stock method from the exercise of options.

Basic and diluted earnings per share for the

three

and

six

months ended

March

31,

2017

and

2016

are:

	Three Months Ended March 31,				Six Months Ended March 31,
	2017		2016		2017		2016
Net income attributable to common shareholders	$	10,671	$	145,630	$	227,832	$	169,624

Basic weighted average shares		10,153,571		10,092,319		10,143,903		10,080,729
Effect of dilutive securities:
Stock options		2,855		−		1,209		−
Diluted weighted average shares		10,156,426		10,092,319		10,145,112		10,080,729

Earnings per common share:
Basic	$	0.00	$	0.01	$	0.02	$	0.02
Diluted	$	0.00	$	0.01	$	0.02	$	0.02

The table below includes information related to stock options that were outstanding at the end of each respective

three

and

six

month periods ended

March

31,

but have been excluded from the computation of weighted-average stock options for dilutive securities due to the option exercise price exceeding the average market price per share of our common stock for the

three

and

six

months ended

March

31,

or their effect would be anti-dilutive.

	Three Months Ended March 31,				Six Months Ended March 31,
	2017		2016		2017		2016
Stock options excluded		510,000		525,000		600,000		525,000
Weighted average exercise price of stock options	$	2.81	$	2.83	$	2.66	$	2.83
Average market price of common stock	$	1.83	$	1.77	$	1.79	$	1.77