Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v3.22.0.1
Earnings Per Share
 3 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Earnings Per Share

 

4. Earnings Per Share

 

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly to basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares had been issued. In the case of a net loss, diluted earnings per share is calculated in the same manner as basic EPS.

 

For the three months ended December 31, 2021 and 2020, options for 47,000 and 471,000 weighted average shares, respectively, were excluded from the diluted EPS calculations because they were anti-dilutive. These shares could become dilutive in the future.

 

A reconciliation of the components of the basic and diluted EPS calculations follows (in thousands, except per share amounts):

 

 

 

Three Months Ended December 31,

 

 

 

2021

 

 

2020

 

Numerator:

 

 

 

 

 

 

Net income

 

$

997

 

 

$

719

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

Weighted-average shares used to compute basic EPS

 

 

14,254

 

 

 

14,072

 

Common stock equivalents (1)

 

 

231

 

 

 

45

 

Weighted-average shares used to compute diluted EPS

 

 

14,485

 

 

 

14,117

 

 

 

 

 

 

 

 

Income per share:

 

 

 

 

 

 

Net income per basic share

 

$

0.07

 

 

$

0.05

 

Net income per diluted share

 

$

0.07

 

 

$

0.05

 

 

(1)
The number of common stock equivalents is calculated using the treasury method and the average market price during the period.