Note 14 - Net Income Per Share

12 Months Ended

Sep. 30, 2016

14. NET (LOSS) INCOME PER SHARE

Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period increased to include the number of dilutive potential common shares outstanding during the period. The dilutive effect of outstanding stock options and warrants is reflected in diluted earnings per share by application of the treasury stock method, which assumes that the proceeds from the exercise of the outstanding options and warrants are used to repurchase common stock at market value. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. If the Company has losses for the period, the inclusion of potential common stock instruments outstanding would be anti-dilutive. In addition, under the treasury stock method, the inclusion of stock options and warrants with an exercise price greater than the per-share market value would be antidilutive. Potential common shares that would be antidilutive are excluded from the calculation of diluted income per share.

The following table sets forth the computation of basic and diluted earnings per share:

	Year Ended September 30,
	2016			2015
Numerator:
(Loss) income available to common stockholders	$	(1,281,599	)	$	9,687,816

Denominator:
Weighted average common shares outstanding		31,970,600			33,174,546
Assumed exercise of dilutive options and warrants		-			400,373
Weighted average dilutive shares outstanding		31,970,600			33,574,919

Basic (loss) income per common share	$	(0.04	)	$	0.29
Diluted (loss) income per common share	$	(0.04	)	$	0.29

Potentially dilutive securities outstanding at period end excluded from the diluted computation as the inclusion would have been antidilutive:
Options		4,404,002			1,402,750
Warrants		-			1,627,945
Total		4,404,002			3,030,695