Annual report pursuant to Section 13 and 15(d)

Note 2 - Earnings per Share

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Note 2 - Earnings per Share
 12 Months Ended
Sep. 30, 2012
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 by dividing net income by the weighted average number of common shares outstanding during the period after 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.

   
Year Ended September 30,
 
Denominator
 
2012
   
2011
   
2010
 
         Weighted average common shares outstanding - basic
    27,693,721       27,287,342       26,981,275  
Net effect of dilutive securities:
                       
          Options
    913,600       1,243,222       1,292,919  
          Warrants
    39,823       59,197       60,947  
          Unvested restricted shares
    286,000       381,250       210,250  
Total net effect of dilutive securities
    1,239,423       1,683,669       1,564,116  
         Weighted average common shares outstanding - diluted
    28,933,144       28,971,011       28,545,391  
Income per common share – basic
  $ 0.55     $ 0.20     $ 0.25  
Income per common share – diluted
  $ 0.53     $ 0.19     $ 0.24  

All the outstanding warrants and stock options were included in the computation of diluted net income per share for the years ended September 30, 2012, 2011 and 2010.