5. Earnings Per Share


	Three Months Ended March 31,				Six Months Ended March 31,
	2020		2019		2020		2019
Numerator:
Net income	$	438,105	$	202,499	$	766,013	$	341,920
Denominator:
Basic weighted average shares		16,931,138		16,860,568		16,920,087		16,850,584
Dilutive effect of share-based awards		192,250		15,152		182,396		7,576
Diluted weighted average shares		17,123,388		16,875,720		17,102,483		16,858,160

Earnings per common share:
Basic EPS	$	0.03	$	0.01	$	0.05	$	0.02
Diluted EPS	$	0.03	$	0.01	$	0.04	$	0.02

Earnings per share (“EPS”) are calculated pursuant to FASB ASC Topic 260, “Earnings Per Share.” 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, 2020, and 2019, there were 548,500 and 550,834 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, 2020 and 2019, respectively, 0 and 300,834 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, 2020 and 2019, respectively, 0 and 425,834 diluted weighted-average shares outstanding were excluded from the computation of diluted EPS because the effect would be anti-dilutive.