NOTE 13. EARNINGS PER SHARE

 

The following table sets forth the computation for basic and diluted earnings per share (EPS):

  

Year Ended June 30,

 
  2025  2024 

(dollars in thousands, except per share data)

        

Net Income (Loss)

 $(334) $1,333 
         

Weighted average number of outstanding shares

        

Basic

  13,343,506   14,182,300 

Effect of dilutive securities

        

Stock options

  1,121   53 

Diluted

  13,344,627   14,182,353 
         

Earnings (Loss) Per Share

        

Basic Net Income (Loss) per Share

 $(0.03) $0.09 

Diluted Net Income (Loss) per Share

 $(0.03) $0.09 

 

The diluted EPS calculation excludes the effect of stock options when their exercise prices exceed the average market price for the period. Employee stock options excluded from the calculation of diluted EPS totaled 329,100 for the year ended June 30, 2025, and 229,000 for the year ended June 30, 2024.

 

During fiscal years 2025 and 2024, the Company repurchased class A shares on the open market. Repurchased shares are classified as treasury shares and are deducted from outstanding shares in the earnings per share calculation.

Historical Timeline

Fiscal YearFiled
2025Sep 8, 2025Showing above
2024Sep 10, 2024
2016Sep 14, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.