Quarterly report pursuant to Section 13 or 15(d)

13. Earnings Per Share

13. Earnings Per Share

6 Months Ended

Mar. 31, 2018

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:

	Three Months Ended March 31,						Six Months Ended March 31,
	2018			2017			2018			2017
Basic

Net income	$	1,923,273		$	1,840,666		$	3,800,828		$	3,269,239
Less: preferred stock dividends		(292	)		(480	)		(584	)		(959	)
Net income applicable to common stock	$	1,922,981		$	1,840,186		$	3,800,244		$	3,268,280

Weighted average common shares outstanding		1,970,136			2,058,064			1,972,758			2,029,023

Basic earnings per share	$	0.98		$	0.89		$	1.93		$	1.61

Diluted

Net income applicable to common stock	$	1,922,981	$	1,840,186	$	3,800,244	$	3,268,280
Add: preferred stock dividends		292		480		292		959
Net income applicable for diluted earnings per share	$	1,923,273	$	1,840,666	$	3,800,536	$	3,269,239

Weighted average common shares outstanding		2,027,564		2,058,064		1,972,758		2,029,023
Add: Options		44,923		69,979		44,171		56,458
Add: Common Stock Warrants		–		–		–		–
Add: Series B Preferred Stock		1,071,200		1,071,200		1,071,200		1,071,200
Add: Series B Preferred Stock Warrants		590,145		590,145		590,145		590,145
Add: Series E Preferred Stock		77,840		127,840		77,840		127,840
Assumed weighted average common shares outstanding		3,811,672		3,917,228		3,756,114		3,874,666

Diluted earnings per share	$	0.50	$	0.47	$	1.01	$	0.84

There are 121,250 and 20,000 common stock options that are anti-dilutive that are not included in the three months ended March 31, 2018 and 2017, diluted earnings per share computations, respectively. There are 121,250 and 50,625 common stock options that are anti-dilutive that are not included in the six months ended March 31, 2018 and 2017, diluted earnings per share computations, respectively.