STOCKHOLDERS’ EQUITY

Basic and diluted weighted-average shares outstanding for the

three

months ended

March 31, 2019

and

2018

were as follows:

	Three Months Ended
	March 31,
	2019		2018
Basic and diluted		19,144,912		19,058,202
Potentially dilutive		19,775		27,500

Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding. Diluted net income (loss) per common share is computed similar to basic net income (loss) per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares from share-based compensation arrangements had been issued.

Potentially dilutive shares arise from non-qualified stock options to purchase common stock. The treasury stock method is utilized to determine the number of potentially dilutive shares related to the outstanding non-qualified stock options.

March 6, 2019,

the Company’s Chairman & Chief Executive Officer exercised a non-qualified stock option to acquire

25,000

shares of the Company’s stock at an exercise price of

$5.20

per share. The stock option was granted on

March 9, 2009

and vested

20%

annually beginning

March 9, 2010

through

March 9, 2014.

The stock option had an expiration date of

March 9, 2019.