Net Income Per Share

9 Months Ended

Mar. 31, 2025

Note 3. Net Income per Share

Basic net income per share excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the income of the Company. The computation of diluted net income per share excluded options to purchase 2,500 shares of our common stock for the three and nine months ended March 31, 2025 and 60,766 shares for the three and nine months ended March 31, 2024, as the effect of including them would be anti-dilutive. As unearned shares owned by the Company’s sponsored leveraged employee stock ownership plan (the “ESOP”) are released or committed-to-be-released, the shares become outstanding for earnings-per-share computations.

The following table sets forth the reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for continuing operations for the three month periods ended March 31:

	2025			2024
Numerator:
Net income	$	1,704,487		$	1,031,930
Denominator:

Basic EPS:
Common shares outstanding, beginning of period		2,796,758			2,706,633
Unearned ESOP shares		(200,652	)		(222,566	)
Weighted average common shares issued during the period		3,794			7,778
Weighted average ESOP shares earned during the period		60			61
Denominator for basic earnings per common shares –
Weighted average common shares		2,599,960			2,491,906

Diluted EPS:
Common shares outstanding, beginning of period		2,796,758			2,706,633
Unearned ESOP shares		(200,652	)		(222,566	)
Weighted average common shares issued during the period		3,794			7,778
Weighted average ESOP shares earned during the period		60			61
Weighted average dilutive effect of stock options		99,714			80,015
Denominator for diluted earnings per common shares –
Weighted average common shares		2,699,674			2,571,921

	2025			2024
Numerator:
Net income	$	5,211,303		$	3,921,844
Denominator:

Basic EPS:
Common shares outstanding, beginning of period		2,733,958			2,702,633
Unearned ESOP shares		(211,487	)		(233,646	)
Weighted average common shares issued during the period		41,606			5,606
Weighted average ESOP shares earned during the period		5,437			5,560
Denominator for basic earnings per common shares –
Weighted average common shares		2,569,514			2,480,153

Diluted EPS:
Common shares outstanding, beginning of period		2,733,958			2,702,633
Unearned ESOP shares		(211,487	)		(233,646	)
Weighted average common shares issued during the period		41,606			5,606
Weighted average ESOP shares earned during the period		5,437			5,560
Weighted average dilutive effect of stock options		99,414			39,555
Denominator for diluted earnings per common shares –
Weighted average common shares		2,668,928			2,519,708

ESPEY MFG & ELECTRONICS CORP 10-Q