EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2011

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE C — EARNINGS PER SHARE

Basic earnings per common share are based upon the weighted average number of shares of common stock (“common shares”) outstanding. Diluted earnings per share are based upon the weighted average number of common shares outstanding and, when dilutive, common shares issuable for stock options, warrants, and convertible securities. All earnings per common share for the three-month and nine-month periods ended September 30, 2011, and 2010, have been adjusted for the 5% stock dividend paid on May 14, 2010, to shareholders of record as of April 30, 2010.

The following is a reconciliation of net income (loss) and weighted average common shares outstanding for purposes of calculating basic and diluted net income (loss) per share:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	(Unaudited)					(Unaudited)
	2011		2010			2011		2010
Basic:
Numerator:
Net income (loss)	$	1,046,578	$	(1,270,807	)	$	7,397,087	$	(1,930,906	)
Denominator:
Basic - weighted average common shares outstanding	19,249,379		19,204,448			19,232,644		19,202,250
Basic EPS	$	0.05	$	(0.07	)	$	0.38	$	(0.10	)
Diluted:
Numerator:
Net income (loss)	$	1,046,578	$	(1,270,807	)	$	7,397,087	$	(1,930,906	)
Denominator:
Weighted average common shares outstanding	19,249,379		19,204,448			19,232,644		19,202,250
Effect of Dilutive Securities:
Stock options	286,584		—			302,652		—
	19,535,963		19,204,448			19,535,296		19,202,250
Diluted EPS	$	0.05	$	(0.07	)	$	0.38	$	(0.10	)

Outstanding and exercisable options to purchase 64,867 and 88,249 common shares were not included in the computation of diluted earnings per share as the effect would have been anti-dilutive for the three and nine months ended September 30, 2010 due to net losses in those periods.