Note 7 - Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 7 – Earnings (Loss) Per Share

For periods with net income, net income per common share information is computed using the two-class method. Under the two-class method, basic net income per common share is computed by dividing the net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. No such adjustment to earnings is made during periods with a net loss, as the holders of the convertible preferred shares have no obligation to fund losses.

The Company’s calculation of earnings per share is as follows:

	2013			2012
Basic earnings (loss) per common share:
Net income (loss) applicable to common shareholders – basic	$	(147,482	)	$	227,109
Portion allocable to common shareholders		100.0	%		99.2	%
Net income (loss) allocable to common shareholders		(147,482	)		225,292
Weighted average basic shares outstanding		31,843,704			31,872,617
Basic earnings per share	$	-		$	0.01
Dilutive earnings (loss) per common share:
Net income (loss) allocable to common shareholders		(147,482	)		225,292
Add: undistributed earnings allocated to participating securities		-			1,817
Numerator for diluted earnings (loss) per common share		(147,482	)		227,109
Weighted average basic shares outstanding		31,843,704			31,872,617
Diluted effect:
Unvested restricted stock awards		-			186,000
Conversion equivalent of dilutive Series B Convertible Preferred Stock		-			3,307,299
Conversion equivalent of dilutive Convertible Preferred Stock		-			255,000
Weighted average dilutive shares outstanding		31,843,704			35,620,916
Dilutive earnings (loss) per share	$	-		$	0.01

The table below sets forth the calculation of the percentage of net earnings (loss) allocable to common shareholders under the two-class method:

	2013			2012
Numerator:
Weighted average participating common shares		31,843,704			31,872,617
Denominator:
Weighted average participating common shares		31,843,704			31,872,617
Add: Weighted average shares of Convertible Preferred Stock		-			255,000
Weighted average participating shares		31,843,704			32,127,617
Portion allocable to common shareholders		100.0	%		99.2	%

Diluted earnings(loss) per share for the years ended December 31, 2013 and 2012 do not reflect following potential common shares, as the effect would be antidilutive.

	Years Ended December 31,
	2013		2012
Stock options		645,000		690,000
Unvested restricted stock awards		103,000		-
Convertible preferred stock		3,562,299		-
Total		4,310,299		690,000