5. Computation of Net Income per Share of Common Stock

Basic net income per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Where applicable, diluted EPS is computed by dividing the net income by the weighted-average number of common shares and dilutive common equivalent shares outstanding during the period, calculated using the treasury stock method. Common equivalent shares include the effect of restricted stock, exercise of stock options and warrants and contingently issuable shares. Stock options and warrants that are out-of-the-money with exercise prices greater than the average market price of the underlying common shares and shares of performance-based restricted stock where the contingency was not met are excluded from the computation of diluted EPS as the effect of their inclusion would be anti-dilutive. For the three months ended September 30, 2026, 929,428 shares were not included in the calculation of diluted EPS. Of these 927,316 were shares of performance-based restricted stock where the contingency was not met and 2,112 shares related to outstanding stock options that were considered anti-dilutive. For the six months ended September 30, 2026, 680,922 shares were not included in the calculation of diluted EPS. Of these, 679,866 were shares of performance-based restricted stock where the contingency was not met and 1,056 shares relate to outstanding stock options that were considered anti-dilutive. For the three months ended September 30, 2025, 553,740 shares were not included in the calculation of diluted EPS. Of these 553,334 were shares of performance-based restricted stock where the contingency was not met and 406 shares related to outstanding stock options that were considered anti-dilutive. For the six months ended September 30, 2025, 514,535 shares were not included in the calculation of diluted EPS. Of these, 513,926 were shares of performance-based restricted stock where the contingency was not met and 609 shares related to outstanding stock options that were considered anti-dilutive. 

The following table reconciles the numerators and denominators of the earnings per share calculation for the three and six months ended September 30, 2026 and 2025 (in thousands, except per share data):