Earnings Per Share

9 Months Ended

Sep. 30, 2015

Basic net earnings per share, or basic earnings per share (“EPS”), is computed by dividing net income to common shareholders by the weighted average number of common shares outstanding for the period.

Diluted EPS reflects the potential dilution that could occur if COB's potential common stock, which consists of dilutive stock options and a common stock warrant, were issued. As required for entities with complex capital structures, a dual presentation of basic and diluted EPS is included on the face of the income statement, and a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation is provided in this note.



(dollars in thousands, except share and per share data)	For Three Months Ended				For Nine Months Ended
	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Net income (loss) from continuing operations before cumulative dividends on preferred stock	$	1,517	$	1,773	$	6,559	$	5,842
Dividends on preferred stock	—		—		—		—
Income from continuing operations, net of tax	$	1,517	$	1,773	$	6,559	$	5,842
Loss from discontinued operations, net of tax	—		—		—		—
Net income	$	1,517	$	1,773	$	6,559	$	5,842
Weighted average number of shares outstanding - basic	24,265,346		21,739,009		24,217,211		21,853,866
Weighted average number of shares outstanding - diluted	24,279,112		21,746,965		24,229,885		21,865,972
Net income per share - basic and diluted	$	0.06	$	0.08	$	0.27	$	0.27

During the three and nine months ended September 30, 2015 and September 30, 2014, the price of the Company's common stock (as quoted on the Nasdaq Capital Market) was below the price of the common stock warrant. As a result, the warrant is considered antidilutive and thus is not included in the diluted share calculation.

For the three months ended September 30, 2015, there were an average of 478,476 antidilutive shares, while for the nine months ended September 30, 2015, there were 355,502 antidilutive shares. For the three months ended September 30, 2014, there were an average of 46,278 antidilutive shares, while for the nine months ended September 30, 2014, there were 37,295 antidilutive shares. Of the antidilutive shares, the number of shares relating to stock options were 456,404 and 333,430 for the three months and nine months ended September 30, 2015, respectively, and 24,206 and 15,223 for the three months and nine months ended September 30, 2014, respectively. The number relating to the warrant was 22,072 for all periods presented.