Quarterly report pursuant to Section 13 or 15(d)

Note 2 - Earnings per Share

 v2.3.0.11
Note 2 - Earnings per Share
 9 Months Ended
Jun. 30, 2011
Earnings Per Share [Text Block]
NOTE 2 – Earnings per Share

Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed giving effect to all dilutive potential common shares that were outstanding during the period. Dilutive potential common shares consist of the incremental common shares issuable upon the exercise of stock options and warrants and unvested shares granted to employees and directors.

   
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
 
   
2011
   
2010
   
2011
   
2010
 
Denominator:
                       
Weighted average common shares outstanding – basic
    27,301,422       27,216,798       27,282,597       26,906,295  
Net effect of dilutive securities:
                               
Options
    1,234,933       1,325,378       1,268,335       1,308,276  
Warrants
    58,905       62,090       60,081       61,487  
Unvested restricted shares
    376,250       215,250       376,250       215,250  
Total net effect of dilutive securities
    1,670,088       1,602,718       1,704,666       1,585,013  
Weighted average common shares outstanding – diluted
    28,971,510       28,819,516       28,987,263       28,491,308  
Earnings per common share – basic
  $ 0.02     $ 0.00     $ 0.03     $ 0.05  
Earnings per common share – diluted
  $ 0.01     $ 0.00     $ 0.03     $ 0.04  

All the outstanding warrants and stock options were included in the computation of diluted net income per share during the three and nine months ended June 30, 2011 and 2010.