Earnings Per Share

6 Months Ended

Mar. 31, 2016

5. Earnings Per Share

	Three Months Ended March 31,					Six Months Ended March 31,
	2016		2015			2016		2015
Numerator:
Net income (loss)	$	1,578,313	$	(364,091	)	$	1,362,875	$	229,651
Denominator:
Basic weighted average shares	16,925,719		16,925,028			16,917,679		16,940,377
Dilutive effect of share-based awards	92,442		—			91,620		103,358

Diluted weighted average shares	17,018,161		16,925,028			17,009,299		17,043,735


Earnings per common share:
Basic EPS	$	0.09	$	(0.02	)	$	0.08	$	0.01

Diluted EPS	$	0.09	$	(0.02	)	$	0.08	$	0.01

Earnings per share (“EPS”) are 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 March 31, 2016 and 2015, there were 591,168 and 671,168 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 March 31, 2016 and 2015, respectively, 343,585 and 671,168 diluted weighted —average- shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.

For the six months ended March 31, 2016 and 2015, respectively, 369,333 and 402,774 diluted weighted- average- shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.