Note 8 - Earnings Per Share

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Earnings Per Share [Text Block]

8. Earnings Per Share

Basic earnings per share is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated using the weighted average number of common shares outstanding plus dilutive common stock equivalents outstanding as determined by the treasury method during the period. In periods when we have a net loss, common stock equivalents are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect. For the

three

and

six

month periods ended

June 30, 2018,

we excluded a nominal amount of unvested stock awards from our calculation of diluted weighted average shares because they were antidilutive. For the

three

and

six

month periods ended

June 30, 2017,

we excluded

3

million common stock options,

7

million warrants, and

273,000

unvested stock awards from our calculation of diluted weighted average shares because they were antidilutive.

The following table shows the calculation of basic and diluted earnings per shares:

	Three Month Period Ended					Six Month Period Ended
	June 30,					June 30,
	201 8		201 7			201 8		201 7
Numerator:
Net income (loss) attributable to common stockholders	$	1,045,920	$	(768,212	)	$	943,152	$	(1,638,502	)
Denominator:
Weighted average basic shares outstanding		15,180,169		13,100,820			14,642,378		13,033,106
Effect of dilutive securities		5,194,189		—			4,421,217		—
Weighted average diluted shares		20,374,358		13,100,820			19,063,595		13,033,106
Basic earnings per share	$	0.07	$	(0.06	)	$	0.06	$	(0.13	)
Diluted earnings per share	$	0.05	$	(0.06	)	$	0.05	$	(0.13	)