Note 3 - Net Income Per Common and Common Equivalent Share

3 Months Ended

Apr. 01, 2023

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 1, 2023		April 2, 2022
Basic EPS Computation:
Numerator:
Net income	$	459,201	$	419,436
Denominator:
Weighted average
Common shares
Outstanding		14,452,284		14,389,857
Basic EPS	$	0.03	$	0.03
Diluted EPS Computation:
Numerator:
Net income	$	459,201	$	419,436
Denominator:
Weighted average
Common shares
Outstanding		14,452,284		14,389,857
Dilutive effect of stock options		187,316		268,082
Total Shares		14,639,600		14,657,939
Diluted EPS	$	0.03	$	0.03