3. Earnings per Share

3 Months Ended

Mar. 31, 2014

Notes to Financial Statements

3. Earnings per Share

The following table sets forth the calculation of basic and diluted earnings per share for the three-month period ended March 31, 2013:

	Three Months Ended March 31, 2013
	Income (Numerator)			Shares (Denominator)		Per-Share Amount
Net income	$	418,330			19,516,589	$	.02
Less preferred stock dividends		(24,953	)
Earnings per share - basic
Income available to common stockholders		393,377					.02
Effect of dilutive securities
Options					361,549
Convertible preferred stock		24,953			366,666
Diluted earnings per share
Income available to common stockholders and assumed conversions	$	418,330			20,244,804	$	.02

The following table sets forth the calculation of basic and diluted earnings per share for the three-month period ended March 31, 2014:

	Three Months Ended March 31, 2014
	Income (Numerator)		Shares (Denominator)		Per-Share Amount
Net income	$	438,755		19,771,765	$	.02
Effect of dilutive securities
Options				1,481,742
Diluted earnings per share
Net income per share with assumed conversions	$	438,755		21,253,507	$	.02