Earnings Per Common Share

6 Months Ended

Jun. 30, 2020

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 June 30, 2020 or June 30, 2019; and therefore, no dilutive options in the calculation of diluted EPS for those periods. Diluted EPS also assumes the Senior Convertible Debentures were converted into 302,200 shares of common stock at the beginning of the three and six months ended June 30, 2019. 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.


	Three Months Ended June 30,
	2020								2019
	Income		Shares	Per Share Amounts		Income		Shares	Per Share Amounts
Basic EPS	$	2,016,331	3,252,884	$	0.62	$	1,884,031	2,995,650	$	0.64
Effect of Dilutive Securities:

Senior Convertible Debentures	—		—	—		90,660		302,200	(0.03)

Diluted EPS	$	2,016,331	3,252,884	$	0.62	$	1,974,691	3,257,850	$	0.61

4. Earnings Per Share, Continued


	Six Months Ended June 30,
	2020								2019
	Income		Shares	Per Share Amounts		Income		Shares	Per Share Amounts
Basic EPS	$	3,080,518	3,172,669	$	0.97	$	3,972,904	2,955,086	$	1.34
Effect of Dilutive Securities:

Senior Convertible Debentures	—		—	—		181,320		302,200	(0.06)

Diluted EPS	$	3,080,518	3,172,669	$	0.97	$	4,154,224	3,257,286	$	1.28