Income Per Common Share

3 Months Ended

Jun. 30, 2014

Income per common share:

Income Per Common Share

10.  Income Per Common Share

The Company’s basic net income per share has been computed based on 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.  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 month periods ended June 30, 2014 and 2013.

		2014		2013
Net income		$	19,054	$	16,131
Shares outstanding:
	Weighted average common shares outstanding – basic		2,038,266		2,036,866
	Effect of the assumed exercise of dilutive stock options		16,581		1,625
	Weighted average common shares outstanding – dilutive		2,054,847		2,038,491
Earnings per common share:
	Basic	$	0.01	$	0.01
	Diluted	$	0.01	$	0.01

For the quarter ended June 30, 2014, 35,000 potential common shares relating to stock options were excluded in the computation of diluted net income per share because the options are anti-dilutive.  Anti-dilutive stock options have a weighted average exercise price of $5.98 at June 30, 2014.For the quarter ended June 30, 2013, 105,000 potential common shares relating to stock options were excluded in the computation of diluted net income per share because the options are anti-dilutive.  Anti-dilutive stock options have a weighted average exercise price of $6.38 at June 30, 2013.