Clearfield, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 2 - Net Income Per Share

Note 2 - Net Income Per Share

9 Months Ended

Jun. 30, 2020

Note 2. Net Income Per Share

Basic net income per common share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the reporting period. Diluted EPS equals net income divided by the sum of the weighted average number of shares of common stock outstanding plus all additional common stock equivalents, such as stock options, when dilutive.

The following is a reconciliation of the numerator and denominator of the net income per common share computations for the three and nine months ended June 30, 2020 and 2019:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2020		2019		2020		2019
Net income	$	2,994,568	$	1,300,527	$	4,243,623	$	2,678,429
Weighted average common shares		13,497,955		13,446,289		13,510,413		13,422,885
Dilutive potential common shares		-		5,382		36,711		11,124
Weighted average dilutive common shares outstanding		13,497,955		13,451,671		13,547,124		13,434,009
Net income per common share:
Basic	$	0.22	$	0.10	$	0.31	$	0.20
Diluted	$	0.22	$	0.10	$	0.31	$	0.20