Note 2 - Earnings Per Share

6 Months Ended

Jun. 30, 2020

Note

– Earnings Per Share

Earnings per share (“EPS”) consists of

two

separate components, basic EPS and diluted EPS. Basic EPS is computed based on the weighted average number of shares of common stock outstanding for each period presented. Diluted EPS is calculated based on the weighted average number of shares of common stock outstanding plus dilutive common stock equivalents (“CSEs”). CSEs consist of shares that are assumed to have been purchased with the proceeds from the exercise of stock options, as well as unvested restricted stock (RRP) shares. Common stock equivalents which are considered antidilutive are

not

included for the purposes of this calculation. For the

three

and

six

months ended

June 30, 2020

and

2019,

all unvested restricted stock program awards and outstanding stock options under the

2008

Stock Option Plan and the

2013

Stock Incentive Plan representing shares were dilutive. For the

three

and

six

months ended

June 30, 2020,

all outstanding stock options awarded in

2018

under the

2013

and

2018

Stock Incentive Plans representing shares were dilutive. For the

six

months ended

June 30, 2020,

all outstanding stock options awarded in

2018

under the

2013

and

2018

Stock Incentive Plans representing shares were anti-dilutive.

The following table sets forth the composition of the weighted average shares (denominator) used in the basic and dilutive earnings per share computations.

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	20 20		201 9		20 20		201 9
Net Income	$	731,000	$	665,000	$	1,163,000	$	1,078,000

Weighted average shares outstanding – basic		1,978,421		1,953,452		1,971,276		1,946,944
Effect of dilutive common stock equivalents		24,738		48,238		40,567		46,815
Adjusted weighted average shares outstanding – diluted		2,003,159		2,001,690		2,011,843		1,993,759

Basic earnings per share	$	0.37	$	0.34	$	0.59	$	0.55
Diluted earnings per share	$	0.36	$	0.33	$	0.58	$	0.54