Note 2. Net Income (Loss) Per Share

Basic net income (loss) per common share (“EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the reporting period. Diluted EPS equals net income (loss) 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 (loss) per common share computations for the three and nine months ended June 30, 2026, and 2025:

For the three and nine months ended June 30, 2026, 118,350 and 178,632 stock options, respectively, were not included in the computation of diluted net income (loss) per share because the effect would have been anti-dilutive. Additionally, for the three and nine months ended June 30, 2026, 69,117 and 69,117 performance stock units, respectively, were not included in the computation of diluted net income (loss) per share, because the performance conditions were not deemed probable of achievement. For the three and nine months ended June 30, 2025, 379,471and 395,619 stock options as well as 76,121 and 76,121 performance stock units, respectively, were not included in the computation of diluted net income (loss) per share because the effect would have been anti-dilutive.