Note I - Earnings Per Share

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Earnings Per Share [Text Block]

I. Earnings Per Share

The Company computes earnings per share in accordance with ASC 260, Earnings Per Share. Basic earnings per share is computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share adjusts basic earnings per share for the effects of warrants, restricted stock, stock options and other potentially dilutive financial instruments, only in the periods in which the effects are dilutive.

For the nine months ended September 30, 2023, there were warrants to purchase 1,051,664 shares of common stock, and for the three and nine months ended September 30, 2022, there were warrants to purchase 1,051,664 shares of common stock and options to purchase 25,000 shares of common stock which were excluded from the diluted earnings per share computation because the impact of the assumed exercise of such warrants and stock options and vesting of restricted shares would have been anti-dilutive.

The following table reconciles basic weighted average shares outstanding to diluted weighted average shares outstanding for the three and nine months ended September 30, 2023 and 2022:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Weighted average shares outstanding - basic		5,352,937		5,346,043		5,352,937		5,334,774
Effect of diluted securities		2,069		—		—		—
Weighted average shares outstanding - diluted		5,355,006		5,346,043		5,352,937		5,334,774