Note 3 - Net Income Per Common and Common Equivalent Share

6 Months Ended

Jul. 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				Six Months Ended
	July 1,		July 2,		July 1,		July 2,
	2023		2022		2023		2022
Basic EPS Computation:
Numerator:
Net income (loss)	$	600,503	$	455,108	$	1,059,704	$	874,544
Denominator:
Weighted average
Common shares
Outstanding		14,493,970		14,431,825		14,473,128		14,410,064
Basic EPS	$	0.04	$	0.03	$	0.07	$	0.06
Diluted EPS Computation:
Numerator:
Net income (loss)	$	600,503	$	455,108	$	1,059,704	$	874,544
Denominator:
Weighted average
Common shares
Outstanding		14,493,970		14,431,825		14,473,128		14,410,064
Dilutive effect of stock options		127,959		276,821		157,637		272,452
Total Shares		14,621,929		14,708,646		14,630,765		14,682,516
Diluted EPS	$	0.04	$	0.03	$	0.07	$	0.06