7. Earnings per Share

Basic earnings per share are computed by dividing net income or loss attributable to common stockholders by the weighted average common shares outstanding for the period, which is computed using shares issued and outstanding. Diluted earnings per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the vesting of restricted shares granted but unissued, exercise of stock options and warrants. The dilutive effect of the common stock equivalents is reflected in earnings per share by use of the treasury stock method.

The weighted average dilutive incremental shares included in the calculation of diluted shares for the three and nine-month periods ended June 30, 2026 were 289 and 196, respectively. Due to the loss from continuing operations reported for the three and nine-month periods ended June 30, 2025, there were no dilutive incremental shares considered in the calculation of dilutive shares. Common stock equivalents, which are excluded because their effect is anti-dilutive, were approximately 3,592 and 5,001 for the three-month periods and 3,967 and 4,440 for the nine-month periods ended June 30, 2026 and 2025, respectively.