Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

3 Months Ended

Dec. 31, 2019

Note 11:

Earnings Per Share

Net earnings per share is calculated using the weighted average number of shares of common stock outstanding during the applicable period. 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 December 31,
	2019		2018
Basic
Net income	$	985	$	1,530
Less: preferred stock dividends		—		—
Net income applicable to common stock	$	985	$	1,530

Weighted average common shares outstanding		1,806,746		1,945,247
Basic earnings per share	$	0.55	$	0.79

Diluted
Net income applicable to common stock	$	985	$	1,530
Add: preferred stock dividends		—		—
Net income applicable for diluted earnings per share	$	985	$	1,530

Weighted average common shares outstanding		1,806,746		1,945,247
Add: Options		25,000		11,576
Add: Series B Preferred Stock		1,071,220		1,071,220
Add: Series B Preferred Stock Warrants		590,147		590,147
Add: Series E Preferred Stock		47,840		77,840
Assumed weighted average common shares outstanding		3,540,953		3,696,030
Diluted earnings per share	$	0.28	$	0.41

There are 175,418 and 200,418 common stock options that are anti-dilutive that are not included in the three months ended December 31, 2019 and 2018, diluted earnings per share computations, respectively.