Note 3 - Net Income Per Common and Common Equivalent Share

9 Months Ended

Sep. 30, 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				Nine Months Ended
	September 30,		October 1,		September 30,		October 1,
	2023		2022		2023		2022
Basic EPS Computation:
Numerator:
Net income	$	171,081	$	987,865	$	1,230,785	$	1,862,409
Denominator:
Weighted average Common shares Outstanding		14,517,364		14,434,468		14,487,873		14,417,995
Basic EPS	$	0.01	$	0.07	$	0.08	$	0.13
Diluted EPS Computation:
Numerator:
Net income	$	171,081	$	987,865	$	1,230,785	$	1,862,409
Denominator:
Weighted average Common shares Outstanding		14,517,364		14,434,468		14,487,873		14,417,995
Dilutive effect of stock options		118,877		252,008		144,718		265,637
Total Shares		14,636,241		14,686,476		14,632,591		14,683,632
Diluted EPS	$	0.01	$	0.07	$	0.08	$	0.13