EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2015

4. EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period increased to include all additional common shares that would have been outstanding assuming potentially dilutive common shares, resulting from option exercises, had been issued and any proceeds thereof used to repurchase common stock at the average market price during the period.

	2015		2014		2013

Net income for diluted computation	$	9,617,632	$	4,645,960	$	5,285,847

Weighted average shares:
Basic		6,827,355		6,477,457		6,345,615
Effect of dilutive securities:

Stock options		445,634		602,113		576,659

Diluted		7,272,989		7,079,570		6,922,274

Net income per share:
Basic	$	1.41	$	0.72	$	0.83
Diluted	$	1.32	$	0.66	$	0.76

We exclude from earnings per share the weighted-average number of securities whose effect is anti-dilutive. Excluded from the calculation of earnings per share for the years ended December 31, 2015, 2014 and 2013 were 20,000, 20,000, and 272,500 of options to purchase shares of common stock, respectively, because their effect is anti-dilutive.