10.

EARNINGS PER SHARE

Basic earnings per share are calculated by dividing net income by the weighted average number of shares outstanding during the reporting period. Diluted earnings per share reflect additional dilution from potential common stock issuances upon the exercise of outstanding stock options. The following table sets forth the computation of basic and diluted earnings per common share, as well as a reconciliation of the weighted average number of common shares outstanding to the weighted average number of shares outstanding on a diluted basis.

	Three Months Ended March 31,
	2018		2017
Earnings per common share –Basic and Diluted

Net income	$	523,380	$	503,924

Weighted average number of common shares outstanding		9,254,580		9,146,937

Earnings per common share – Basic	$	0.06	$	0.06

Earnings per common share – Diluted

Net income	$	523,380	$	503,924

Weighted average number of common shares outstanding		9,254,580		9,146,937

Dilutive effect of outstanding stock options		42,712		71,333

Weighted average number of common shares outstanding - assuming dilution		9,297,292		9,218,270

Earnings per common share - Diluted	$	0.06	$	0.05

The Company had no stock options outstanding at March 31, 2018 and 2017 that were anti-dilutive and therefore not included in the diluted earnings per share calculation.