Note 3 - Net Income Per Common and Common Equivalent Share

3 Months Ended

Mar. 30, 2024

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. Had there been a profit in Q1 2024, the dilutive effect would have been 74,285 shares.  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
	March 30, 2024			April 1, 2023
Basic EPS Computation:
Numerator:
Net income (loss)	$	(143,153	)	$	459,201
Denominator:
Weighted average common shares outstanding		14,519,215			14,452,284
Basic EPS	$	(0.01	)	$	0.03
Diluted EPS Computation:
Numerator:
Net income (loss)	$	(143,153	)	$	459,201
Denominator:
Weighted average common shares outstanding		14,519,215			14,452,284
Dilutive effect of stock options		-			187,316
Total Shares		14,519,215			14,639,600
Diluted EPS	$	(0.01	)	$	0.03