Earnings Per Common Share

6 Months Ended

Jun. 30, 2018



	Three Months Ended June 30,
	2018						2017
	Income		Shares	Per Share Amounts			Income		Shares	Per Share Amounts
Basic EPS	$	1,819,954	2,953,412	$	0.62		$	1,477,947	2,945,474	$	0.50
Effect of Dilutive Securities:
Stock Options	—		405	—			—		3,885	—
Senior Convertible Debentures	90,960		303,200	(0.03		)	75,442		304,200	(0.02)
Diluted EPS	$	1,910,914	3,257,017	$	0.59		$	1,553,389	3,253,559	$	0.48

4. Earnings Per Common Share, Continued



	Six Months Ended June 30,
	2018					2017
	Income		Shares	Per Share Amounts		Income		Shares	Per Share Amounts
Basic EPS	$	3,550,071	2,953,297	$	1.20	$	3,106,565	2,945,083	$	1.05
Effect of Dilutive Securities:
Stock Options	—		432	—		—		3,049	—
Senior Convertible Debentures	181,920		303,200	(0.05)		150,883		304,200	(0.05)
Diluted EPS	$	3,731,991	3,256,929	$	1.15	$	3,257,448	3,252,332	$	1.00

Earnings Per Common Share

Accounting guidance specifies the computation, presentation and disclosure requirements for earnings per share (“EPS”) for entities with publicly held common stock or potential common stock such as options, warrants, convertible securities or contingent stock agreements if those securities trade in a public market. Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding. Diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive common shares had been issued. The dilutive effect of options outstanding under the Company’s stock option plan is reflected in diluted EPS by application of the treasury stock method. All of the options outstanding at June 30, 2018 and 2017 had an exercise price below the average market price during the three and six months ended June 30, 2018 and 2017. Therefore, these options were considered to be dilutive to EPS in those periods. Diluted EPS also assumes the convertible debentures were converted as of the beginning of the period. The related interest expense recorded during the period is added back to the EPS numerator while the underlying shares are added to the denominator.

The following tables include a summary of the Company's basic and diluted EPS for the periods indicated.