Note 3 - Net Income (Loss) Per Common and Common Equivalent Share

9 Months Ended

Oct. 01, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

(3)   Net Income (loss) Per Common and Common Equivalent Share

Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated by dividing net income (loss) 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				Nine Months Ended
	October 1,		September 25,		October 1,		September 25,
	2022		2021		2022		2021
Basic EPS Computation:
Numerator:
Net income	$	987,865	$	2,727,967	$	1,862,409	$	2,998,067
Denominator:
Weighted average Common shares Outstanding		14,434,468		14,324,136		14,417,995		13,963,563
Basic EPS	$	0.07	$	0.19	$	0.13	$	0.21
Diluted EPS Computation:
Numerator:
Net income	$	987,865	$	2,727,967	$	1,862,409	$	2,998,067
Denominator:
Weighted average Common shares Outstanding		14,434,468		14,324,136		14,417,995		13,963,563
Dilutive effect of stock options		252,008		487,124		265,637		578,793
Total Shares		14,686,476		14,811,259		14,683,632		14,542,356
Diluted EPS	$	0.07	$	0.18	$	0.13	$	0.21