EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares after considering the additional dilution related to common stock options and restricted stock. In computing diluted earnings per share, the outstanding common stock options are considered dilutive using the treasury stock method.

The Company’s restricted stock awards are treated as outstanding for earnings per share calculations since these shares have full voting rights and are entitled to participate in dividends declared on common shares, if any, and undistributed earnings. As participating securities, the shares of restricted stock are included in the calculation of basic EPS using the two-class method. For the periods presented, the amount of earnings allocated to the participating securities was not material.

The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per-share data):



	Three-Months Ended December 31,				Six-Months Ended December 31,
	2018		2017		2018		2017
Net income, as reported	$	779	$	156	$	849	$	231

Weighted average common shares outstanding	16,100		16,047		16,091		16,028
Effect of dilutive stock options	6		21		7		53
Weighted average diluted common shares outstanding	16,106		16,068		16,098		16,081

Net income per common share
Basic and diluted	$	0.05	$	0.01	$	0.05	$	0.01

Employee stock options excluded from computation of dilutive income per share amounts because their effect would be anti-dilutive	684		778		684		401