Note 3 - Net Income Per Common and Common Equivalent Share

3 Months Ended

Apr. 02, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

(3)      Net Income Per Common and Common Equivalent Share

Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share is calculated by dividing net income by the sum of the weighted average number of common shares plus additional common shares that would have been outstanding if potential dilutive common shares had been issued for granted stock options and stock purchase rights. Common stock equivalents are excluded from the diluted calculations when a net loss is incurred as they would be anti-dilutive.

The following table presents the calculation of both basic and diluted EPS:

	Three Months Ended
	April 2 2022		March 27, 2021
Basic EPS Computation:
Numerator:
Net income	$	419,436	$	30,903
Denominator:
Weighted average
Common shares
Outstanding		14,389,857		13,584,376
Basic EPS	$	0.03	$	0.00
Diluted EPS Computation:
Numerator:
Net income (loss)	$	419,436	$	30,903
Denominator:
Weighted average
Common shares
Outstanding		14,389,857		13,584,376
Dilutive effect of stock options		268,082		680,514
Total Shares		14,657,939		14,264,890
Diluted EPS	$	0.03	$	0.00