EARNINGS PER SHARE

6 Months Ended

Dec. 31, 2021

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 considered participating securities as the shares have full voting rights and are entitled to participate in dividends declared on common shares, if any, and undistributed earnings. The two-class method presentation of the basic and diluted EPS is not presented as the amount of earnings allocated to the participating securities was not material for the periods presented. Instead, the unvested awards are included in the diluted EPS.

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


	Three-Months Ended December 31,				Six-Months Ended December 31,
	2021		2020		2021		2020
Net income as reported	$	1,437	$	1,228	$	647	$	935

Weighted average common shares outstanding	19,245		16,497		18,562		16,444
Effect of dilutive stock options	155		432		94		431
Weighted average diluted common shares outstanding	19,400		16,929		18,656		16,875

Net income per common share


Basic and Diluted	$	0.07	$	0.07	$	0.03	$	0.06
Employee stock options excluded from computation of dilutive income per share amounts because their effect would be anti-dilutive	269		—		269		25