Earnings Per Common Share

3 Months Ended

Mar. 31, 2019



	Three Months Ended March 31,
	2019						2018
	Income		Shares	Per Share Amounts			Income		Shares	Per Share Amounts
Basic EPS	$	2,088,873	2,954,515	$	0.71		$	1,730,117	2,953,180	$	0.59
Effect of Dilutive Securities:
Stock Options	—		—	—			—		1,152	—
Senior Convertible Debentures	90,660		302,200	(0.04		)	90,960		303,200	(0.03)
Diluted EPS	$	2,179,533	3,256,715	$	0.67		$	1,821,077	3,257,532	$	0.56

Earnings Per 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. There were no stock options outstanding at March 31, 2019. All of the options outstanding at March 31, 2018 had an exercise price below the average market price during the three months ended March 31, 2018. Therefore, these options were considered to be dilutive to EPS in that period. Diluted EPS also assumes the convertible debentures were converted into 302,200 and 303,200 shares of common stock at the beginning of the three month periods ended March 31, 2019 and 2018, respectively. 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.