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Earnings Per Share
 9 Months Ended
Jun. 30, 2014
Earnings Per Share  
Earnings Per Share:

5. Earnings Per Share

 

 

 

Three months ended June 30,

 

Nine Months Ended June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income

 

$
497,030 

 

$
307,473 

 

$
2,289,842 

 

$
1,732,186 

 

Denominator:

 

 

 

 

 

 

 

 

 

Basic weighted average shares

 
16,951,360 

 
16,790,484 

 
16,918,423 

 
16,725,305 

 

Dilutive effect of share-based awards

 
226,212 

 
190,801 

 
223,109 

 
65,213 

 

Diluted weighted average shares

 
17,177,572 

 
16,981,285 

 
17,141,532 

 
16,790,518 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

Basic EPS

 

$
0.03 

 

$
0.02 

 

$
0.14 

 

$
0.10 

 

Diluted EPS

 

$
0.03 

 

$
0.02 

 

$
0.13 

 

$
0.10 

 

 

Earnings per share (“EPS”) is calculated pursuant to FASB ASC Topic 260, Earnings Per Share (“ASC Topic 260”).  Basic 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 June 30, 2014 and 2013, there were 715,002 and 898,000 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 the three months ended June 30, 2014 and 2013, respectively, 57,500 and 91,720 diluted weighted average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.

 

Quarterly and full year-to-date EPS are calculated independently based on the weighted average number of shares outstanding during each quarter.  As a result, the sum of each quarter’s per share amount may not equal the total per share amount for the year-to-date.