Quarterly report pursuant to Section 13 or 15(d)

13. Earnings Per Share

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13. Earnings Per Share
3 Months Ended
Dec. 31, 2017
Earnings Per Share [Abstract]  
Earnings Per Share

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:

 

    2017     2016  
Basic                
                 
Net income   $ 1,877,555     $ 1,428,573  
Less: preferred stock dividends     (292 )     (479 )
Net income applicable to common stock   $ 1,877,263     $ 1,428,094  
                 
Weighted average common shares outstanding     1,975,380       1,999,983  
                 
Basic earnings per share   $ 0.95     $ 0.71  

 

Diluted            
             
Net income applicable to common stock   $ 1,877,263     $ 1,428,094  
Add: preferred stock dividends     292       479  
Net income applicable for diluted earnings per share   $ 1,877,555     $ 1,428,573  
                 
Weighted average common shares outstanding     1,975,380       1,999,983  
Add: Options     34,476       44,355  
Add: Common Stock Warrants            
Add: Series B Preferred Stock     1,071,200       1,071,200  
Add: Series B Preferred Stock Warrants     590,145       590,145  
Add: Series E Preferred Stock     77,840       127,840  
Assumed weighted average common shares outstanding     3,749,041       3,833,523  
                 
Diluted earnings per share   $ 0.50     $ 0.37  

 

There are 40,000 and 0 common stock options that are anti-dilutive that are not included in the three months ended December 31, 2017 and 2016, diluted earnings per share computations, respectively.