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Net Income Per Share:
 12 Months Ended
Sep. 30, 2013
Net Income Per Share:  
Net Income Per Share:

4.  Net Income Per Share:

 

 

 

For the Fiscal Year Ended September 30,

 

 

 

2013

 

2012

 

2011

 

Numerator:

 

 

 

 

 

 

 

Net income

 

$

1,886,917

 

$

2,978,994

 

$

716,590

 

Denominator:

 

 

 

 

 

 

 

Basic weighted average shares

 

16,753,068

 

16,641,895

 

16,782,223

 

Dilutive effect of share-based awards

 

102,786

 

5

 

42,398

 

Diluted weighted average shares

 

16,855,854

 

16,641,900

 

16,824,621

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

Basic

 

$

0.11

 

$

0.18

 

$

0.04

 

Diluted

 

$

0.11

 

$

0.18

 

$

0.04

 

 

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.

 

The number of incremental shares from the assumed exercise of stock options is calculated by using the treasury stock method. As of September 30, 2013 and 2012, there were 824,834 and 836,200 options to purchase common stock 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 fiscal years 2013, 2012 and 2011, 445,472, 806,200, and 184,300 options to purchase common stock, respectively, were excluded from the computation of diluted earnings per share, because the effect would be anti-dilutive.