Earnings Per Share

9 Months Ended

Jun. 30, 2016

5. Earnings Per Share

	Three Months Ended June 30,					Nine Months Ended June 30,
	2016		2015			2016		2015
Numerator:
Net income (loss)	$	226,797	$	(3,531,973	)	$	1,589,672	$	(3,302,322	)
Denominator:
Basic weighted average shares	16,941,707		16,910,475			16,925,688		16,930,522
Dilutive effect of share-based awards	117,839		—			101,528		—

Diluted weighted average shares	17,059,546		16,910,475			17,027,216		16,930,522


Earnings per common share:
Basic EPS	$	0.01	$	(0.21	)	$	0.09	$	(0.20	)

Diluted EPS	$	0.01	$	(0.21	)	$	0.09	$	(0.20	)

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 June 30, 2016 and 2015, there were 590,168 and 667,168 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 June 30, 2016 and 2015, respectively, 340,586 and 400,641 diluted weighted —average- shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.

For the nine months ended June 30, 2016 and 2015, respectively, 359,571 and 402,063 diluted weighted- average- shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.