Earnings Per Share

3 Months Ended

Dec. 31, 2016

5. Earnings Per Share

	Three Months Ended December 31,
	2016			2015
Numerator:
Net income (loss)	$	(1,194,974	)	$	(215,438	)
Denominator:
Basic weighted average shares	16,716,014			16,909,638
Dilutive effect of share-based awards	—			—

Diluted weighted average shares	16,716,014			16,909,638


Earnings per common share:
Basic EPS	$	(0.07	)	$	(0.01	)

Diluted EPS	$	(0.07	)	$	(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 December 31, 2016 and 2015, there were 586,834 and 611,168 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 December 31, 2016 and 2015, respectively, 587,341 and 645,081 diluted weighted —average- shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.