Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

6 Months Ended

Mar. 31, 2024

Net income per share is calculated using the weighted average number of shares of common stock outstanding during the applicable period. Basic weighted average common shares 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 Condensed Consolidated Balance Sheet. Diluted net income per share is computed using the weighted average number of common shares outstanding and if dilutive, potential common shares outstanding during the period. Potential common shares consist of the additional common shares 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 (in $000's):


	Three Months Ended March 31,				Six Months Ended March 31,
	2024		2023		2024		2023
Basic
Net (loss) income	$	(3,281)	$	1,558	$	(3,963)	$	3,402
Less: preferred stock dividends	—		—		—		—
Net (loss) income applicable to common stock	$	(3,281)	$	1,558	$	(3,963)	$	3,402

Weighted average common shares outstanding	3,154,771		3,143,911		3,159,180		3,101,007
Basic (loss) earnings per share	$	(1.04)	$	0.50	$	(1.25)	$	1.10

Diluted
Net (loss) income applicable to common stock	$	(3,281)	$	1,558	$	(3,963)	$	3,402
Add: preferred stock dividends	—		—		—		—
Net (loss) income applicable to diluted earnings per share	$	(3,281)	$	1,558	$	(3,963)	$	3,402

Weighted average common shares outstanding	3,154,771		3,143,911		3,159,180		3,101,007
Add: Options	—		40,832		—		36,379


Add: Series E Preferred Stock	—		239		—		239
Assumed weighted average common shares outstanding	3,154,771		3,184,982		3,159,180		3,137,625
Diluted (loss) earnings per share	$	(1.04)	$	0.49	$	(1.25)	$	1.08

Basic earnings per common share ("EPS") is computed by dividing net income by the weighted average number of shares of Common Stock outstanding for the period. Diluted EPS is computed by dividing net income by the sum of the weighted average number of shares of Common Stock outstanding and the effect of dilutive securities. No diluted EPS computation was made for the three and six months ended March 31, 2024, as the Company recorded a net loss. Had the Company calculated diluted EPS for the three and six months ended March 31, 2024, the total assumed weighted average common shares outstanding would have been 3,173,021 and 3,177,549, respectively, and there would have been 22,500 options to purchase shares of common stock that were anti-dilutive. For the three and six months ended March 31, 2023, there were 17,000 options to purchase shares of common stock that were anti-dilutive, and not included in the diluted EPS computation.