Income Per Common Share

3 Months Ended

Sep. 30, 2011

Notes to Financial Statements

9. Income Per Common Share

Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period.  Diluted net income per share assumes the exercise of all stock options having exercise prices less than the average market price of the common stock during the period using the treasury stock method and is computed by dividing net income by the weighted average number of common shares and dilutive potential common shares (stock options) outstanding during the period.  In periods where losses are reported, the weighted-average number of common shares outstanding excludes potential common shares, because their inclusion would be anti-dilutive.

The following is a reconciliation of the number of shares used in the calculation of basic income per share and diluted income per share for the three and six month periods ended September 30, 2011 and 2010.

	Three Months Ended				Six Months Ended
	September 30				September 30
	2011		2010		2011		2010
Net income	$	79,272	$	70,040	$	183,657	$	75,816
Shares outstanding:
Weighted avg. common shares outstanding – basic		2,029,926		1,935,199		2,029,938		1,928,711
Effect of the assumed exercise of dilutive stock options		6,550		10,694		11,331		17,709
Weighted avg. common shares outstanding – dilutive		2,036,476		1,945,893		2,041,269		1,946,420
Earnings per common share:
Basic	$	0.04	$	0.04	$	0.09	$	0.04
Diluted	$	0.04	$	0.04	$	0.09	$	0.04

For the three and six month periods ending September 30, 2011, 30,000 options were excluded from the diluted net income per share calculations.  Anti-dilutive stock options have a weighted average exercise price of $6.29 at September 30, 2011. For the three and six month periods ending September 30, 2010, 91,250 options were excluded from the diluted net income per share calculations.  Anti-dilutive stock options have a weighted average exercise price of $6.81 at September 30, 2010.