Note 4 - Income (Loss) Per Share

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 4

–

Income

(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. Basic net loss attributable to common stockholders is computed by an adjustment to subtract from net income the portion of current period earnings that the preferred shareholders would have been entitled to receive pursuant to their dividend rights had all of the period’s earnings been distributed. 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 table below sets forth the calculation of the percentage of net earnings (loss) allocable to common shareholders under the two-class method:

	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
	2015			2014			2015			2014
Basic Income per Share:
Net income applicable to common shareholders - basic	$	36,736		$	127,435		$	298,238		$	249,684
Portion allocable to common shareholders		99.2	%		99.2	%		99.2	%		99.2	%
Net earnings allocable to common shareholders		36,442			126,416			295,852			247,687
Weighted average basic shares outstanding Basic income per share		31,947,753			31,904,786			32,064,778			31,892,694
Basic income per share	$	-		$	-		$	0.01		$	0.01
Dilutive Income Per Share:
Net income applicable to common shareholders		36,442			126,416			295,852			247,687
Add: Undistributed earnings allocated to participating securities		294			1,019			2,386			1,997
Numerator for diluted income per share		36,736			127,435			298,238			249,684
Weighted average shares outstanding - basic		31,947,753			31,904,786			32,064,778			31,892,694
Diluted effect:
Stock options		19,250			20,222			19,250			18,000
Unvested restricted stock awards		19,250			-			19,250			-
Conversion equivalent of diluted Series B Convertible Preferred Stock		3,307,299			3,307,299			3,307,299			3,307,299
Conversion equivalent of diluted Convertible		255,000			255,000			255,000			255,000
Restricted stock options		-			22,000			-			15,714
Weighted average dilutive shares outstanding		35,548,552			35,509,307			35,665,577			35,488,707
Dilutive income per share	$	-		$	-		$	0.01		$	0.01

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Numerator
Weighted average participating common shares		31,947,753			31,904,786			32,064,778			31,892,694
Denominator:
Weighted average participating common shares		31,947,753			31,904,786			32,064,778			31,892,694
Add: Weighted average shares of Convertible Preferred Stock		255,000			255,000			255,000			255,000
Weighted average participating shares		32,202,753			32,159,786			32,319,778			32,147,694
Portion allocable to common shareholders		99.2	%		99.2	%		99.2	%		99.2	%

Diluted net income (loss) per share for the three and nine months ended September 30, 2015 and 2014 does not reflect the following potential common shares, as the effect would be antidilutive.

	September 30, 2015		September 30, 2014
Stock options		610,000		610,000
		610,000		610,000