Computation of Earnings Per Share

9 Months Ended

Sep. 30, 2016

Computation of Earnings Per Share [Abstract]

Computation of Earnings Per Share

6.Computation of Earnings Per Share

Basic and diluted earnings per share are calculated as follows:

	For the Nine Months Ended September 30,				For the Three Months Ended September 30,
	2016		2015		2016		2015
Net income	$	1,262,000	$	3,362,500	$	529,700	$	1,255,000
Weighted average shares outstanding for the period		1,566,699		1,543,257		1,566,699		1,543,257
Dilutive effect of warrants		-		8,924		-		5,212
Weighted average diluted shares used in calculation    of diluted earnings per share		1,566,699		1,552,181		1,566,699		1,548,469
Basic earnings per share	$	0.81	$	2.18	$	0.34	$	0.81
Diluted earnings per share	$	0.81	$	2.17	$	0.34	$	0.81

Basic earnings per common share is computed using net income and the weighted average number of common shares outstanding during the period.  Diluted earnings per common share are computed using net income and the weighted average number of common shares outstanding, assuming dilution.  Weighted average common shares outstanding, assuming dilution, include potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed exercise of warrants using the treasury stock method.  The warrants were exercised in December 2015 and there is, therefore, no dilutive effect for the quarter or nine months ended September 30, 2016.