4. Net Income Per Share

	For the Fiscal Year Ended September 30,
	2017		2016		2015
Numerator:
Net income (loss)	$	4,568,627	$	1,986,801	$	(5,866,134	)
Denominator:
Basic weighted average shares	16,742,461		16,927,055		16,924,189
Dilutive effect of share-based awards	113,182		112,241		—

Diluted weighted average shares	16,855,644		17,039,296		16,924,189


Net income (loss) per common share:
Basic	$	0.27	$	0.12	$	(0.35	)

Diluted	$	0.27	$	0.12	$	(0.35	)

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 and restricted stock units (“RSUs”).

The number of incremental shares from the assumed exercise of stock options and RSUs is calculated by using the treasury stock method. As of September 30, 2017 and 2016, there were 586,834 and 589,168 options to purchase common stock outstanding, respectively, and no shares subject to vesting of restricted stock units 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 2017 and 2016, 336,961 and 339,581 shares, respectively were excluded from the calculation of earnings per share as their effect would be anti-dilutive. For fiscal year 2015, all options to purchase common stock were excluded from the computation of diluted earnings per share because the effect would be anti-dilutive.