4. Net Income Per Share


	For the Fiscal Year Ended September 30,
	2018		2017		2016
Numerator:
Net income (loss)	$	(3,653,905)	$	4,568,627	$	1,986,801
Denominator:
Basic weighted average shares		16,805,991		16,742,461		16,927,055
Dilutive effect of share-based awards		—		113,182		112,241
Diluted weighted average shares		16,805,991		16,855,644		17,039,296

Net income (loss) per common share:
Basic	$	(0.22)	$	0.27	$	0.12
Diluted	$	(0.22)	$	0.27	$	0.12

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, 2018, 2017 and 2016, there were 550,834, 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 year 2018, all options to purchase common stock were excluded from the computation of diluted earnings per share because the effect would be anti-dilutive. 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.

Net income and EPS in the period ended September 30, 2017 were positively impacted by approximately $4.1 million of other income related to the Company’s settlement agreement with Delta Air Lines, Inc., (See Note 5. Unbilled Receivable in Notes to Consolidated Financial Statements).