Computation of Earnings Per Share

12 Months Ended

Dec. 31, 2016

Computation of Earnings Per Share [Abstract]

Computation of Earnings Per Share

10.Computation of Earnings Per Share

Basic and diluted earnings per share are calculated as follows:

	For the Years Ended December 31,
	2016		2015
Net income	$	1,221,700	$	6,437,600
Weighted average shares outstanding for the period		1,566,699		1,544,285
Dilutive effect of warrants		-		-
Weighted average diluted shares used in calculation of diluted earnings per share		1,566,699		1,544,285
Basic earnings per share	$	0.78	$	4.17
Diluted earnings per share	$	0.78	$	4.17

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. As discussed in Note 12, the warrants were exercised on December 16, 2015 and 23,442 shares of Common Stock were issued to the warrantholders.