Quarterly report pursuant to Section 13 or 15(d)

13. Earnings Per Share

13. Earnings Per Share

3 Months Ended

Dec. 31, 2017

Net earnings per share is calculated using the weighted average number of shares of common stock outstanding during the applicable period. Basic weighted average shares of common stock outstanding do not include shares of restricted stock that have not yet vested, although such shares are included as outstanding shares in the Company’s Consolidated Balance Sheet. Diluted net earnings per share is computed using the weighted average number of common shares outstanding and if dilutive, potential common shares outstanding during the period. Potential shares of common stock consist of the additional shares of common stock issuable in respect of restricted share awards, stock options and convertible preferred stock. Preferred stock dividends are subtracted from net earnings to determine the amount available to common stockholders.

The following table presents the computation of basic and diluted net earnings per share:

	2017			2016
Basic

Net income	$	1,877,555		$	1,428,573
Less: preferred stock dividends		(292	)		(479	)
Net income applicable to common stock	$	1,877,263		$	1,428,094

Weighted average common shares outstanding		1,975,380			1,999,983

Basic earnings per share	$	0.95		$	0.71

Diluted

Net income applicable to common stock	$	1,877,263	$	1,428,094
Add: preferred stock dividends		292		479
Net income applicable for diluted earnings per share	$	1,877,555	$	1,428,573

Weighted average common shares outstanding		1,975,380		1,999,983
Add: Options		34,476		44,355
Add: Common Stock Warrants		–		–
Add: Series B Preferred Stock		1,071,200		1,071,200
Add: Series B Preferred Stock Warrants		590,145		590,145
Add: Series E Preferred Stock		77,840		127,840
Assumed weighted average common shares outstanding		3,749,041		3,833,523

Diluted earnings per share	$	0.50	$	0.37

There are 40,000 and 0 common stock options that are anti-dilutive that are not included in the three months ended December 31, 2017 and 2016, diluted earnings per share computations, respectively.